What We Have Learned and What It Will Change
If we were to ask ourselves the questions we think about every morning a year ago we would think we were crazy. Do we have enough toilet paper? Is this store open? Did I sanitize properly after I left the house? Do we need more hand sanitizer or soap? What style mask should I wear and do I need gloves? These questions are the new normal and it is weird. As we move through this pandemic, we are learning a lot about germs and a lot about convenience. For years we could leave home and not worry, we essentially were spoiled as a society. Once this virus is defeated what will change? What will change and what will be the same? We can only guess for now.
Work
This topic has been discussed in great detail in the past. However, it is crucial to understanding why things will never be the same again. The pandemic resulted in Americans being either furloughed, deemed essential, or switching to work from home roles. Initially most companies did not have a proper logistic set up to make remote meetings and business transactions easy. However, as this pandemic went on, companies began finding solutions to these problems. Now that an infrastructure for working from home has been created, many businesses will save money by continuing to do business this way. The positive is it will likely save companies a lot of money by saving on expenditures. Travel expenses and utility costs are down and many companies will realize they can end leases and save money on real estate costs in the future. Why pay for a building you do not need because you are equipped and set up for people to work from home. However, this is not a positive for all businesses which brings us to the next possible change.
Real Estate
Companies will save a lot of money when they choose not to reopen locations and continue to use their remote systems, but what about real estate companies and investments. There are multimillion dollar companies that depend on monthly rent income to survive and pay employees. A mall cannot afford ground keepers and maintenance workers when they have no tenants. The same can be said for commercial business centers. Large metropolis centers are dependent on sky scrapers full of offices to survive. If these large buildings slowly lose tenants because office locations are closing, how long can the building stay maintain? Eventually money will run out and things will break and this can lead to disaster. Some locations will be able to weather this storm and some buildings can be repurposed, but not all. We can only wait and see what the long term effect on commercial real estate business will be and hope for the best. Tens of Thousands of jobs likely depend on this.
The housing market was on the rise when the pandemic started. Interest rates were really low and this created a seller’s market. People who wanted to sell were getting plenty of foot traffic at open houses and getting top dollar. The current crisis put a swift end to the home buying boom. Not because people didn’t want to buy house, they just didn’t want to travel to see them. Additionally, sellers were more cautious to let strangers in their home to view them. It is true that real estate is a technology frontrunner when it comes to modernization, but people still want to actually go to a property before they pay a life changing sum of money for it. It is too early to see if the pandemic has only caused a pause in the housing market surge or has stopped it completely. For now we can only hope for the best.
Shopping
When was the last time you went to the grocery store or to buy a new pair of shoes? The answer differs greatly based on where you live and your individual situation, however, it should be obvious to everyone by now that stores are different. The hours have changed, there are new rules, and delivery is a much more widespread option. The good thing about the pandemic is stores have never been cleaner. Companies want their customers to feel safe and comfortable and the best way to do this is to be clean. Stores need to look clean, have people be seen cleaning at all times, and even smell clean to be successful. If people perceive your place as dirty they will simply take their business elsewhere. What is inconvenient about stores being this clean is it cuts down on options and takes longer to shop; additionally, most places have shorter hours as well. There are no longer any late night trips to the grocery store. Cashiers must follow new rules to stop the spread of all germs and this takes time. So expect to spend more time waiting in lines then you use too. It is unavoidable if you want to ensure a clean environment.
What if you still do not feel safe going out in public? People still need groceries and other products and companies have made major logistical changes to accommodate these people. Almost everywhere from grocery stores to electronic stores now offer curbside pickup. All you have to do is order online, wait a short amount of time, and show up to pick up your product. It is convenient, easy, and you do not even have to leave your car. Other people have relied on third party companies to do their shopping for them. You can order your groceries online and someone will do your shopping for you and bring it to your house for a fee. It makes it easy to ensure your fridge is always stocked; however, these people are likely less picky then we would be. Do not expect them to spent time ensuring you get the best produce. Finally, companies like Amazon and other major online businesses have seen some growth. People can buy anything they need and never leave their homes. This could end up being a good thing but can also be problematic in the future.
So much has already changed and so much will continue to change. We learn more every day and this pandemic will cause a drastic, permanent, shift in how we live our lives. Face masks and cleaner stores might only be the start. There is no predicting the future, all we can do it look back 10, 20, 30 years from now and hope we did the right thing. In the meantime, try to find a good start up investment. Some of these companies will be real successful, just remember some will fail as well.