Industries such as healthcare have had to pivot to new technology and practices in response to the novel coronavirus, or COVID-19. Many of these new technologies were already in place before the COVID-19 outbreak, just not widely adopted and used. For example, telehealth, in which a patient can see a doctor from the comfort of home, is now available for nearly all individuals.
Just as the healthcare industry has had to pivot, so too has the real estate industry. This includes changes to the logistics of commercial real estate transactions, from contract drafting to closings.
The Impact of COVID-19 on Real Estate
In daily briefings from state and federal government and constant media reports physicians, nurses, personal protective equipment and supply chains get most of the publicity. After healthcare, the economy has been a major focus. Real estate is closely tied to the economy.
In March, Barron’s warned that COVID-19 could have a devastating impact on the hospitality industry. We’ve seen much of the warning come to pass with the closure of hotels, bars and restaurants—with some restaurants shuttered permanently. Similarly, outlets like National Real Estate Investor have begun documenting the impact of COVID-19 on real estate.
States across the country have issued stay-at-home orders, extending the hospitality closures that began in March. These orders restrict citizens from venturing out of their homes except for essential services (or to provide essential services). Texas Governor Greg Abbott issued a stay-at-home order starting on April 2nd and effective through the end of the month.
All of this adds up to more stress on real estate and the economy at large.
Real Estate Closing Logistics During the COVID-19 Pandemic
Fortunately, the same types of digital technologies healthcare professionals use to see patients (like telehealth) also exist for real estate owners and investors.
If you’re working from home, you’re already familiar with technologies such as videoconferencing. Others include electronic signatures and online document notarization,which has only recently been introduced to close real estate transactions while following social distancing practices.
Real Estate Transaction? Contact The Lonergan Law Firm P.L.L.C.
The economy has not shut down completely. We’re still here for you. We continue to adapt in our response to the COVID-19 pandemic, including implementing new ways of doing business while maintaining social distancing practices.