Although all businesses took a hit during the pandemic, the retail and travel industries faced some of the worst repercussions. With social distancing mandates in place, retail centers like malls and other shopping centers could no longer continue operations.

How COVID-19 Affected Retail Businesses

Retail centers shut down entirely during the lockdown since they were not essential businesses, pushing investors and businesses to face problems. Even after lockdowns started easing, the footfall has failed to reach pre-COVID numbers, leaving retailers to face heavy losses in a shaky economy.

However, retail, commercial real estate is beginning to recover and pick up the face, with prospects looking much more promising for the near future. The situation is no different in Rio Grande Valley as the retail sector is beginning to get back into the business.

Retail Commercial Real Estate Trends

Although things have started moving forward, a few significant changes and trends will be at the center of this progress in the industry.

1. Price Decrease

Accounting for the higher risk the retail industry faces has led to a decrease in the price of properties and a likely future increase in rent. Retail REITs continued to remain stable despite the retail industry’s state, which has injected confidence into the industry.

Since the prices are lower, right now is the best time for commercial real estate investors to buy retail centers.

2. Incorporation of Technology into Buying Experience

Several surveys attempted to identify retail business strategy moving forward given the pandemic, and many have shown an interest in relying more on technology in the future. There is an increasing focus on incorporating AI and touch screen technology in mapping the buying experience.

As an investor, you will likely need to ensure the retail center pitch to future businesses incorporates possible technological facilitation and ease of access to be more competitive.

3. The Shift Towards Medical Retail

Clothing, makeup, food brands, etc., will make a retail comeback. There has also been an increasing shift towards medical retail, which has created a new niche within the retail commercial real estate sector. If you are investing now, adding medical retail to your investment portfolio will likely help you benefit from the increasing demand for the category.

4. Greater Need for Safety Protocols

Despite vaccinations, COVID-19 will remain a consistent reality in our lives for several years. Therefore, all retail, commercial real estate will need to incorporate safety protocols to avoid becoming the hub of disease spread and protect consumers.

Any spreads will only worsen the retail business further, which makes this trend exceedingly significant.

Final Thoughts

Overall, retail, commercial real estate suffered a setback at the height of the pandemic, and the industry is slowly reprising its previous position. There will be multiple changes moving forward, the most important of which are the inclination towards medical retail and the adoption of safety protocols.

If you are considering new commercial real estate investments in Rio Grande Valley, don’t hesitate to contact us. CHRE has been operating in the industry for several years, and we will help you find the most lucrative investments.