As people around the world have heard by now, a new virus was recently discovered in China in December 2019. Since its initial discovery, the coronavirus, which has been formally named COVID-19, it has been confirmed in a majority of states throughout the United States, including New York. The coronavirus has impacted nearly every industry in some way, including real estate.
As legal experts in real estate and construction law, we know the significance of understanding the virus’s impact, not only on the economy but in the real estate industry as well. Here are the most important things to know about the coronavirus and how its effecting New York real estate.
What Are The Risks?
With over 8.6 million residents, New York City is expected to see a number of changes in real estate in the coming weeks. According to the article from Curbed New York, the real estate industry is expected to see delays in a number of commercial real estate development projects. This will likely be a result of required work restrictions that could force workers to temporarily halt construction in an effort to reduce the spread of the coronavirus.
Another ongoing issue is that many construction projects rely on supplies that come directly from China, which remains the hardest-hit area in the world. Like the United States, many cities in China were forced to shut down businesses to protect their citizens. As a result, there has been a slow-down in the number of supplies that are being produced. While the country has started to return to work, it will continue to have an impact on real estate in New York City.
The Ongoing Impact
As we mentioned, a number of real estate development projects are expected to halt as more restrictions are put in place to slow the spread of the coronavirus. Because of the unprecedented territory that we are in with the coronavirus, there is not a specific timeline of when any restrictions will be lifted. Additionally, it is difficult to determine how detailed the restrictions could become in the coming weeks.
While this continues to be a concerning situation for communities around the world, it is important to remain vigilant and provide as much support as a professional as possible. Learn more about its impact from Curbed New York.