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|August 10, 2020|
Office market hit by COVID slowdown
INLAND EMPIRE Ė (INT) - Workplace shutdowns have taken a toll on the Inland Empire office market.
Newmark Knight Frank (NKF) in its second quarter of 2020 Office Market report noted that San Bernardino County is allowing office-based businesses to resume pending approval of workplace reopening plans. Public health officials and business leaders are still recommending that employees work from home whenever possible, which has dampened plans for new or expanded offices.
NKF further states that the recovery for the office market depends on public sentiment, whether employers and employees feel comfortable returning to traditional office workplaces and if new cases of coronavirus increase, which would lead to more economic uncertainty. A decrease in coronavirus patients is also necessary for the regionís healthcare providers to recover, as emergency treatment of COVID-19 patients displaces traditional client care, the industryís main source of revenue.
As NKF notes, all of the sectors that drive office demand in the region have been impacted by varying degrees: healthcare, education, government agencies, and real estate.
The regionís role as a logistics hub does offer some resilience for the industrial sector, which will help support the economy during a period that has officially become a recession.
Story Date: August 7, 2020