We are currently in the midst of an ongoing pandemic. The highly contagious coronavirus has led to major countries coming to a standstill to fight this virus. This has, unfortunately affected the majority of businesses in the United States too. All non-essential businesses have been instructed to work from home, where possible, or shut down to prevent the spread of the virus.
Some states are beginning to ease the restrictions and are allowing businesses to reopen under certain conditions. The economy has taken a massive hit due to this virus and citizens have been negatively impacted as well.
Low interest rates
The stock market crashed as a result of businesses shutting down and many losing their livelihood. To help businesses back on their feet and stimulate the economy, the US Federal Reserve cut interest rates to zero.
This has been the most dramatic move since the economic crisis of 2008. They also stated that they would buy $700 billion in government securities and mortgage-backed securities to reduce the slowdown to some extent.
Impact of COVID-19 on businesses
Many big players in the industry have had to send home their employees during this pandemic. The lack of business means that organizations can no longer afford to pay employees. Businesses have resorted to leasing excess property, selling off unused assets like property, vehicles, etc. to make ends meet for as long as they can.
Impact of low interest on leasing
Since interest rates are at an all-time low, landlords can reap the benefits of this situation. As an owner of commercial property, now might be the perfect time to put your property up for lease. The low interest rates will encourage businesses to take sign up for a lease since financing is cheap. During this time many tenants will also be interested in renewing their leases due to the decrease in interest rates.
Interest rates have been lowered to benefit businesses and many will try their best to stay afloat and grab every opportunity they can find.
Get in touch with us at Macomb Commercial Real Estate. We provide services for sellers, buyers, and those looking to lease their commercial property in Macomb. Our experts believe in building relationships with clients and therefore, provide the best real estate advice too. You can get a free monthly market report over on our website to help you gauge the market and we can help you find out how much your building is worth. Our website lists industrial buildings for lease as well as offices for sale. Contact us today. We’ll make sure you get the best deal possible.