Heading into 2020, there were signs this wouldn’t go down as a banner year for real estate.
Demand was softening in some sectors. Prices were relatively flat, and the anemic level of economic growth projected for the region, 1% to 2%, was not enough to suggest that the growing inventory of multifamily and office space would be absorbed any time soon.
Still, no one was expecting a particularly bad year, either. Vacancy rates, outside of multifamily, were low. Residential activity was strong and retail tenants were figuring out new ways to adapt to the growing competitive threat from Amazon and other online retailers.
Then, the pandemic struck, disrupting the global economy for months, bringing local commerce to a standstill for weeks, sending crude oil prices to chilling new lows and throwing all projections for what the next year holds into a complete tailspin.
Real estate people tend to be bullish by nature, so it wasn’t surprising back in March that many were optimistic and predicting a swift V-curve recovery after a slow second quarter.
Now, it’s apparent the ripple effect of the shutdown and the collateral damage it caused can’t be reversed so quickly or easily.
While the fortunes of the real estate sector hinge on the overall recovery of the economy, which will depend on whether COVID-19 infections spike again and whether consumers feel comfortable enough to get out and start spending again, there are a couple of key factors that will have a big impact on what happens in Baton Rouge.
Read the latest cover package from Business Report, which takes a look at the factors most important to the future of Baton Rouge’s real estate sector.
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