The COVID-19 pandemic and social unrest across the country have had a devastating impact on the real estate and hospitality segments.
Shelter-in-place orders and an economic contraction slashed consumer spending and virtually eliminated travel. The impact was swift and severe. Many retailers and travel-related companies suffered. Some went out of business and others are still struggling financially. Office space is evolving to address more work-from-home arrangements and new in-office social distancing guidelines, and apartment vacancy rates are rising. At the same time, changing consumer behavior – increased online shopping – has generated demand for industrial and warehouse space.
The pandemic fallout was exacerbated in major cities by rioting and looting after demonstrations in May. Many businesses and properties suffered extensive losses after peaceful protests in response to charges of police brutality turned violent.
Despite the fallout, signs of a rebound are emerging across the U.S. To survive going forward, real estate operators, owners, managers and developers must be more diligent about expense control – including insurance costs. In this environment, risk management is crucial.
To learn more about the current challenges and considerations, as well as emerging risks in the real estate and hospitality industry, click here: https://mma.marshmma.com/Insurance_Insights_RealEstate_Hospitality_Aug_20