And we’re back with Peter Miscovich from JLL, we saw such a huge shift to e-commerce in this work from home and nearly every industry out there. So how is this impacting real estate needs and demands for businesses?
We’re seeing some really interesting new emerging trend lines. And I’ll just name several. I mean, one is the emergence of the need for warehouse industrial and logistics space. We have seen such massive growth in that sector over the last two years. It’s just incredible. I would also add we’re seeing sector growth in the life sciences and biotech and research lab sector. And we may see some interesting conversions. As an example, like retail storefronts converting to coworking spaces. We’re seeing some interesting conversions from hotels being converted to residential towers here in New York and elsewhere. And so the office sector is also going through its own transformation. I will add, Patrice, the high quality commercial office buildings for small tenants, mid-sized tenants, whether it’s suburban or urban, those are all in demand. And we believe those will continue to be in demand in the foreseeable future. What may not be in demand will be some of the Class B, class C, if you will, you know, less desirable office building stock and building products.
Wow. That’s that’s just fascinating. And I will say in our middle market business, we are seeing a lot of the same things. When people say like “how is the recovery going?” We can say “uneven.” It just is very uneven. We’re seeing a massive demand for cold storage and warehousing, as you mentioned, and all sorts of things that we really didn’t have that kind of demand for before. And and people shifting back to wanting to carry more inventory when the whole supply chain fell apart over pandemic. So now all of a sudden going from, “Gee, I don’t want anything on my shelves” to, “Gee, I need I need a couple of places to buy it from and more places to store it in case something like this ever happens again.”
Peter Miscovitch, managing director with Jones, Lang, LaSalle and Patrice DeCorrevont, market executive in Wells Fargo Commercial Banking continue the conversation about businesses returning to the office.