CNN BUSINESS | Commercial real estate flounders as housing market booms
New York (CNN Business) – The housing market is red hot thanks to record-low mortgage rates and consumers looking to flee cities for the suburbs. But offices, shopping malls and other commercial real estate properties have been hit hard by the coronavirus pandemic.
The rise of Zoom (ZM), Slack (WORK) and other productivity tools has made it easier for people to set up home offices and still get their jobs done. Meanwhile, Amazon (AMZN) and other digital retailers are flourishing amid the Covid-19 pandemic as the shift from bricks to clicks has accelerated.
“There will likely be less demand for commercial real estate due to the rising popularity of online shopping and working from home,” said Ivy Investments global economist Derek Hamilton in an e-mail. —more—