Opportunity or nonsense? Is it under the auspices of the virus right to invest in a store
The economic crisis led to the closure of many stores in the city centers and a decrease in their prices and rental prices. • In a special panel we held as part of the podcast "Money in the Wall"
Magidovich agrees that commercial real estate is an asset for long-term investment. “When I come to buy or invest I do not buy a store for today, but for tomorrow. For me the corona is an opportunity. "When there are no people, it lowers the rental values and also of the properties, and if I have time to breathe, things will start to recover."
He believes stores will still have an edge, but character is likely to change: "It's true that people work from home and remotely, and there are companies that are reducing real estate that make capsules, and some will adopt these methods in the long run, but people want to turn around and buy with eyes. Nice to have food deliveries, but in the end you want the experience, to sit in a cafe. And it's true that there are apps where you photograph your body according to your body measurements, and buy clothes and that's nice, but people want to go and buy and measure the garment.
"Let's think of such large department stores as they used to be. You would go in and measure a garment and ask to bring me this and that. They hold a small stock of one garment. You come, surveyor, and if the suit suits you, the bed is waiting for you on the hotel bed. You no longer need a warehouse in the store, so the warehouse can be on the outskirts of town. So we will need stores, but their location also depends on it, "Magidovich explains.
Ben Shahar: "The stores will be smaller and not sure we need measuring booths and cash registers, because we will all pay on mobile. So real estate is changing and we need to understand the dynamics."
Can an in-store investment also suit a private investor?
Ben Shahar: "I think it is suitable for entrepreneurs who have enough capital, and who do not look at their situation every day. I mean people who even if they took a bank loan for half a year or a year will not have a tenant it will not kill them. potential". Magidovich: "I am positive about it."
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