Tagged: COVID-19

Jacob Kupp Explains How COVID-19 Is Affecting Real Estate in Central Florida

Jacob Kupp in Orlando Florida

The COVID-19 crisis has had a profound effect on a myriad of industries, and real estate has certainly experienced an observable impact due to the adaptations the market has had to make. Jacob Kupp of Orlando FL, as an attorney with years of experience in the commercial real estate space, has noticed that both commercial and residential real estate have seen shifts over the course of the past few months. For the benefit of individuals scouting trends in the Central Florida market, Kupp discusses some of the biggest ways that COVID-19 is currently impacting the industry.

  Realtors Have Implemented Digital Solutions for Safety

Just as many industries have gravitated towards remote work and digital strategies to keep employees and clients safe during the COVID-19 health crisis, real estate agencies have implemented similar solutions for the time being. Jacob Kupp of Orlando FL notes that many agencies in the state are utilizing virtual portals to facilitate property tours, showings, open houses, and meetings between buyers and sellers. Realtors have become adept at utilizing technology that they already have on hand to videotape listings or perform virtual walk throughs to show to prospective buyers what listed properties have to offer. Buyers can also get an understanding for properties via 3D virtual real estate tours, which have risen in popularity due to the pandemic. With these tours, potential buyers can virtually traverse the space and get a better feel for the flow of the property than through pictures alone.

Commercial Real Estate is in Flux

Experts such as Jacob Kupp of Orlando FL and members of the National Association of Realtors acknowledge that the outlook for commercial real estate is not as poor as it appeared earlier in the pandemic. It is expected that demand for retail and office space will fall over the next year, as offices have continued with work from home practices and citizens have been visiting brick-and-mortar establishments less amidst the current landscape. Still, Jacob Kupp realizes that some employers for industries that are not currently working remotely (or may begin in-person work schedules soon) will be on the lookout for larger office spaces. These larger offices will accommodate social distancing measures much easier than smaller spaces are able to.

Lower Inventory of Median Priced Homes

Jacob Kupp of Orlando FL acknowledges that listings and pending sales have begun to increase after taking a hit during the beginning of the pandemic, but both are still down when compared to a year. The inventory shortage in Central Florida has made the landscape a seller’s market especially for homes within the median value. The median list price of a home in Orlando Florida was up 7% in May of 2020 when compared to May of last year and is still on the rise. Experts say that homes that are priced fairly in this market will likely be sold fast, and if a seller were to list in this market they could expect offers within a week or even less. While Jacob Kupp of Orlando FL recognizes that there is an inventory shortage for homes within the median and above, there is notably an oversupply of houses within the $1 million-plus market. This could be linked to a few potential reasons, such as buyers being less likely to buy a home over the median price range sight unseen when compared to lower priced housing options.

COVID-19’s Impact on Commercial Real Estate a Mixed Bag, says Jacob A. Kupp of Orlando

Jacob Kupp of Orlando Florida

The demise of demand for commercial real estate (CRE) due to COVID-19 has been greatly exaggerated. That’s the latest from those in the CRE industry, including Jacob A. Kupp of Orlando, and the foundation remains strong despite some headlines that are stirring up unwarranted concern. The coronavirus has taken a toll on businesses from California to Connecticut and with storefronts shuttered, paying the monthly mortgage on a commercial property has been particularly painful for business owners. Jacob A. Kupp, an attorney with hands-on experience in Florida’s CRE sector, says that this too shall pass – the doors will one day re-open and regular business hours will resume.

According to an April 2020 article from Florida Trend, the state’s industrial market “could benefit in the long-term from many of the behavioral changes spurred by the crisis.” More specifically, experts here predict a shift in manufacturing away from China and back into the U.S. and this will drive the need for warehouses. Business Observer adds that Florida’s trend toward new e-commerce facilities is likely to ramp up and “industrial fulfillment centers in key locations will flourish nationwide, following a temporary slowdown.” A spike in online shopping is almost guaranteed due to two motivating factors: Apprehension from the general public about entering public places as the coronavirus recedes and convenience of having these orders sent directly to their homes instead. Jacob A. Kupp of Orlando believes those two factors will be a boost for the CRE sector in Florida and beyond.

In other parts of the country, the future of commercial spaces looks to be a bit less rosy. The New York Times on May 13, 2020 reported that Manhattan could face a “reckoning” if work-from-home protocols become the new norm. Squeezed for space, the bustling New York borough can’t bank on sprawling warehouses like Florida can. That’s why Jacob A. Kupp read with interest about the city – which has “the largest business district in the country” – seeing international brands opt to let employees work from home indefinitely and simultaneously reduce the size of their office footprints. This will slam New York’s tax coffers and equally hurt local businesses that these employees once frequented Monday through Friday.

We’re not out of the coronavirus woods yet, but the “new normal” is quickly coming into view. Jacob A. Kupp of Orlando has worked with buildings and parcels of land of all types and sizes; the variety here has taught him that no two customers are in search of the same product. His background in legal matters has also allowed him to help clients looking for new ventures and wanting to close on a “for lease” unit as soon as possible. All told, 2020 could be a year of CRE opportunity for those who act smart and fact.