Trbo Commercial Real Estate – News You Can Use!
Each week, I am striving to provide you with more insight as to what is going on with the commercial real estate along with the latest news in Arizona and beyond. This week, we will talk about the newest orders given by Governor Ducey along with some surprising uses for industrial properties.
Ducey to Open Retail
With all of our lives changing so drastically in the last few weeks, many are wondering what the next few weeks will look like. Wednesday, Governor Ducey laid out a step-by-step approach to binging life back to the AZ economy while announcing an extension of physical distancing measures. The order allows retail businesses currently not in operation to begin delivery, curbside pick-up, drive-up service, walk-up service and drive-thru service on Monday, May 4th, followed by in-person operations on Friday, May 8th, but social distancing and sanitation measures must be implemented.
Governor Ducey also announced that he is aspiring to allow restaurants to offer dine-in services to customers in May as well. For now, gyms, hair salons, bars, etc will remain closed. This is a step in a positive direction as many are eager to get “back to normal”.
Something new came across my desk this week. A client was looking for a ghost kitchen. What is a ghost kitchen, you may ask? A ghost kitchen is a professional food preparation and cooking facility set up for the preparation of delivery-only meals. It contains the equipment needed to prepare food but no dining area. These kitchens are often set up in industrial buildings because the cost is less than a retail space. This is a benefit to industrial building owners as it allows yet another usage in an already booming arena of real estate.
Another effect of the COVID-19 pandemic is the increase demand for cold storage warehouse space. Online grocery sales have increased dramatically as many consumers shelter in place. The demand for heightened cold storage use will become more widely used as e-commerce grocery grows, demand for more cold storage capacity as the shift in restaurant dining formats change and as the need for temperature-controlled facilities rises. It seems that the warehousing industry is playing many roles through the changes in our economy.
Although many are struggling through this pandemic, the industrial market is holding strong. If you have any questions regarding the latest news or market conditions, please do not hesitate to contact me. I’d love to help you look at your portfolio and see what I can do help.