LOS ANGELES: The distribution of COVID-19 vaccines is fueling optimism that Americans will increasingly return to the ways they used to shop, travel and work before the pandemic.

That would be a welcome change for companies that own office buildings and hotels, or those that lease space to restaurants, bars, department stores and other retailers. These have been the hardest-hit areas of commercial real estate over the past year as the pandemic forced many businesses to shut down temporarily or operate on a limited basis.

But even as the U.S. economy appears set to roar back to life this year, as many economists now predict, demand trends for commercial real estate could take longer to recover as businesses reassess their post-pandemic needs.

This means higher vacancy rates and declining rents this year, especially for retail and office property owners, said Thomas LaSalvia, senior economist with Moody’s Analytics.

“We see such potential and plenty of anecdotes and early data of actual shifts in how we work and how we shop,” he said. “The structural changes that are going on still give us pause to say that we’ve entered a recovery in terms of office or retail.”

So far this year, the commercial real estate market has seen some positive trends, as many businesses that had to shut down or operate on a limited basis are being given the green light to open by governments amid a pullback in new coronavirus cases and a ramped-up rollout of vaccines.

In March, the national unemployment rate fell from 6.2% to 6% and employers added 916,000 jobs, the most since August. That included 216,000 positions at restaurants, hotels and bars – the sector most damaged by the pandemic.

And this week, the International Monetary Fund forecast that the U.S. economy will grow 6.4% this year. That would fastest annual pace since 1984 and the strongest among the world’s wealthiest countries.

Still, commercial real estate owners face uncertainty as tenants reevaluate their needs. Will businesses that rented office space and spent the last year with most or all of their employees working from home need as much space? Will retailers that shifted more of their operations online during the pandemic cut back on storefronts? Will businesses resume spending on travel after having embraced video conferencing?

The full impact of these assessments may not be known for a while, as commercial property leases tend to run between five and 15 years. Still, some of the economic fallout from the pandemic is already visible in national commercial real estate industry data.

The vacancy rate for retail space increased to 10.6% in the first three months of this year from 10.2% a year earlier, according to Moody’s Analytics. And average effective rent, what’s left after taking out concessions offered by landlords to woo tenants, dropped 1.5%.

Moody’s Analytics is projecting vacancy rates for retail properties will climb to 11% or 12% as businesses reconsider their space needs after last year, when the percentage of retail purchases made online nearly doubled to 20%.

“We actually expect that to rise closer to 25% by 2025,” LaSalvia said. “This pandemic forced a lot of people to pull the bandage off in terms of being willing and able to shop online.”

For office space, vacancies rose to a rate of 18.2% in the first quarter from 17%, while average effective rent fell 1.8%, according to Moody’s Analytics.

Before the pandemic, office vacancies had been trending around 15% to 16% nationally. LaSalvia expects that to climb to 20% by 2022, then decline gradually to 17% by the end of the decade.

Hotels have had it particularly rough. Occupancy rates sank a year ago after global leisure and business travel all but ground to a halt. The monthly occupancy rate had been running well above 60% in 2019 and stood at 65.7% in February 2020. Two months later, it sunk to 20.6%, according to data from Moody’s Analytics.

Occupancy improved to about 45% last summer, before easing again. It was 34.4% in January, down from 66% a year earlier.

Meanwhile, the average revenue per available room, or RevPAR, a key hotel industry metric, was $30.27 in January, down 64% from a year earlier.

Hotel occupancy is expected to pick up this summer, as more people receive a COVID-19 vaccine and feel more at ease about travel. Last month, U.S. airport security checkpoints recorded sharp increases in traffic, including more than 1.5 million people in a single day, the largest number since the pandemic began.

“The summer leisure season will be pretty good,” LaSalvia said. “But the business travel is going to hold us back a little bit this year and it’s going to take maybe a couple of years before that really picks up again.”

Originally Appeared On: https://realty.economictimes.indiatimes.com/news/commercial/pandemic-impact-may-weigh-on-commercial-real-estate-recovery-in-us/81988872

 

These homes found in all corners of the world prove just how striking and unique residential architecture can be, drawing inspiration from people, landscapes and shapes. They showcase some ingenious use of space and details that help set them apart from the average home. Check out these impressive examples of out-of-the-ordinary house designs from around the globe!

1. Stacked Home in Australia

This beautiful and unique-looking home offers the perfect solution for a narrow lot – a stacked design! The various stacked levels are linked but also provide private spaces for a comfortable multigenerational living arrangement. A large vertical atrium in the center offers an abundance of natural light throughout. What’s more, the ten stacked boxes, clad in zinc, are set back at different intervals to create an eye-catching exterior.

2. Pentahouse in Poland

Taking inspiration from the jagged peaks of mountains, this home design concept is a series of concrete pentagons with interesting slanted walls that create a totally unexpected shape, complete with pentagon-shaped windows. Inside the home, the roof allows for impressive vaulted ceilings and the large windows provide plenty of natural light and opportunities to view the surrounding landscape.

3. House in the Landscape in Russia

The idea behind this stunning home was to blur the lines between exterior and interior. The home’s organic sweeping, rounded shapes blend naturally into the surrounding landscape, and large windows help link the outside world with the home’s interior. To further highlight the indoor/outdoor design, the home’s roof has a garden with woody and herbaceous plants. Skylights throughout the home bring in lots of natural light, and circles are used everywhere to continue the organic look.

4. Reversible Destiny Lofts in Japan

This inspiring collective housing project was developed with the physical body and the physical environment in mind. Dedicated to American author and activist Helen Keller, the lofts offer a combination of exciting textures, bold colors and surprising uses of space to create a unique experience for anyone who lives, works or visits here. The idea is to challenge and excite the senses while exploring how we interact with the world around us.

5. 18.36.54 House in the United States

Making excellent use of incredible angles and structural design, this Connecticut home certainly stands out amongst the 54-acre meadow surrounding it. The design is like a folding ribbon structure that includes 18 planes, 36 points and 54 lines, and is covered on the exterior by gorgeous reflective copper panels. The warm wood elements used throughout the home are highlighted by the incoming natural light from the large windows. The awe-inspiring angles seen on the exterior are reflected throughout the interior of the house.

6. House-Shaped House in Portugal

A cheeky ode to the classic representation of a house – with peaked roof and straight lines – this home is a beautifully simplistic structure with many interesting details. Black concrete panels contrast against the series of wood frames that make up the home’s front, which features an attractive porch area. A sizeable paneled window lets tons of natural light spill into the rest of the space, which is open and modern.

7. Olwen House in Vietnam

Making the best use of a narrow lot, this home is built upward to create a lovely multifunctional environment. The first two floors of the house are dedicated to workspaces, while the third floor is a gathering space for the whole family. Private lofts are located above. The home was built using local materials such as brick, roofing tiles and wood, and a cool-looking external staircase provides an outdoor connection to the separate spaces.

8. Bubble Palace in France

This futuristic-looking home is definitely a standout example of architecture that is designed to be noticed. Made up of many interconnected ‘bubbles,’ the home includes ten bedrooms decorated by contemporary artists, a 500-seat outdoor auditorium and impressive gardens and water features. Large round windows throughout the home provide great views of the ocean and surrounding landscape. The unique circular theme is continued throughout the home’s many rooms and seating areas.

9. Crown House in Poland

The Crown House is a conceptual home design that, not surprisingly, looks much like a crown. The home’s multiple peaks create an interesting look from every angle and the minimal use of windows adds an eco-friendly aspect that helps prevent energy loss. There are two levels to the home – the ground floor includes the kitchen/living room/dining spaces and the upper level has three bedrooms and three baths. Sharp contrasts created by the home’s dark and light features make it even more interesting to look at.

10. Glassbook House in Australia

Pulling inspiration from places like Tokyo and Paris for its cool design, this home takes natural lighting to a whole new level with walls of glass blocks that make the narrow space feel open and inviting. The home’s traditional features were blended with modern updates, including many bookshelves that create a ‘wall’ of books when filled. The updated interior is simple and sophisticated, mimicking the home’s intriguing yet calming exterior.

Originally Appeared On: https://www.point2homes.com/news/us-real-estate-news/10-jaw-dropping-home-designs-around-world.html