Navigating The Unknown - The Impact of The Upcoming Election and COVID-19 on Markets
It seems that everywhere we look, there is uncertainty on the future state of affairs. Today, we are met with an endless supply of information, data, commentary and critiques. When making decisions that impact future goals, whether in business, real estate or your personal life, it is important to consider the most relevant information available and consult the advice of trusted experts.
At the moment, there is conflicting information on the direction of markets that can impact real estate decisions. In regard to the pandemic, many businesses and industries have been impacted by lockdowns, layoffs, and decreased sales that have hurt the future outlooks for companies. At the same time, a significant shift to e-commerce has stabilized the industrial real estate market as many companies, including Amazon, have continued to seek warehouse and industrial space. Many industrial companies have, thankfully, found themselves pandemic-proof. As much of the country struggles, industrial properties have held-up in value, commanding pre-COVID prices.
In addition, the upcoming election creates another level of uncertainty as each presidential candidate brings a completely different approach and potential impact to commercial real estate. Prior to COVID, President Trump’s first term saw significant growth in the stock market and property valuations, with an emphasis on tax cuts. Democratic nominee Joe Biden is proposing increased taxes on income and capital gains, eliminating 1031-exchanges and significant changes to family trust tax exemptions.
We speak with business owners and real estate investors like you every day. Some are holding onto their properties to operate their businesses out of, even if their properties have doubled or tripled in value. Others are deciding to take some chips off the table due to economic, political or social uncertainty, as they can still command a pre-pandemic price for their buildings. In any case, we work in and study the industrial real estate market every day and are more than willing to have a conversation with you to help you better understand your property’s value or current market lease rate. Feel free to reach out by phone at (858)458-3361 or email ajize@voitco.com.