Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Possible Long-Term Impacts of COVID-19 on Commercial Real Estate

By Steve Vainder
November 01, 2020

The ongoing economic contraction caused by the 2019 novel coronavirus has been swift and dramatic. In a matter of months, unemployment has reached Great Depression levels, bankruptcies have spiked, and the U.S. government has scrambled to avoid economic fallout. The pressing question is how, and to what extent, COVID-19 will affect commercial real estate. While it is likely that the long-term impact of COVID-19 will be significant, the short-term effect may be to accelerate sector and geographic trends that were already prevalent before the pandemic emerged.

Retail Sector Trends

Prior to COVID-19, the retail sector was dealing with substantial disruption from online sellers. Department stores were already suffering from low sales volumes. However, the already anemic results fell substantially in the wake of the pandemic. Even "experiential retail" (restaurants, coffee bars, movie theaters, and the like), widely believed to be the savior of brick and mortar retail, has been decimated by COVID-19. In addition to mandatory closures imposed in connection with the quarantine, ongoing social distancing requirements, and the resulting limitations on occupancy, will likely continue to have devastating impacts on these businesses. The viability of these businesses will depend on how long the pandemic requires them to operate at unsustainable levels.

Office Sector Trends

The office sector had also been undergoing shifts prior to COVID-19. Many businesses were opting for more "pods" and open space than traditional closed-door offices to encourage collaboration. However, social distancing requirements and other infection prevention strategies will require businesses to design, or redesign, their space in order to balance the need for collaboration with the health of employees.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

Fresh Filings Image

Notable recent court filings in entertainment law.