If you google the “side effects of covid-19” you will get a long list of medical symptoms you would expect. However, it is the economic side effects of covid-19 that continue to play out in surprising ways. The economic impact on restaurants during 2020 was very clear and easy to understand, but the Notable Numbers for the Week section of this week’s Weekly Market Review details several of these market changes that are less obvious.
Additionally, the 2nd paragraph details how covid-19 contributed to the significant spike in home prices. What is not mentioned is the economic impact on commercial office space. With the work from home (WFH) transition gaining massive amounts of steam over the last 15 months, the need and the future value of office related real estate buildings is a big question. As leases come due and tenants move out or renegotiate for less square footage needs, it seems certain to impact the value of those buildings in a negative way.
Meanwhile, the stock market pushes ahead to new all-time highs on the heels of what appears to be a hopeful bipartisan agreement on infrastructure. In the wake of the condo collapse tragedy in Florida, agreeing to an infrastructure bill to decrease the possibility of the occurrences of unfortunate events on public roads, bridges and buildings is critical.
We hope you find the Weekly Market Review both informative and interesting. Have a great week!
Trevor N. Coe, CFP®