In the wake of the global pandemic, commercial real estate developers face staunch challenges when it comes to ensuring safety in buildings with hundreds of residents, employees, guests, or customers, according to South Florida developer Irwin Tauber.

Here are four new trends that every developer must consider to ensure everyone’s safety in the community or building.

In 2020, brick and mortar retail businesses were decimated by government mandates that forced store closures in the midst of the pandemic. Even when stores reopened, reduced capacity shrunk revenue to a fraction of normal profits. The surge in online shopping included restaurant and grocery deliveries. However, this dramatically impacted the supply chain and did little to help small businesses housing commercial shopping centers.

Irwin Tauber points out the increasing demand for warehouse space as a primary driver in the coming year — something which may cause a shift in focus for some commercial real estate developers.

The force majeure clause delays contractual obligations due to acts beyond the control of developers and other parties. Since this clause typically covers acts of God and contains continuing obligations such as rent payment, the pandemic has placed many developers on untrod ground.

An increase in lawsuits using common law doctrine has caused a shift in requirements for legal representation. New contracts must include directives that account for pandemics and government restrictions beyond the developers control. This will give developers in The United States room to negotiate contingencies in order to prevent defaults, says Irwin Tauber.

State and local governments will not realize the same income until the pandemic passes and businesses reopen. This fiscal downturn may result in a pinch in government revenue that jeopardizes current and future contracts for government-sponsored projects.

The development community may need to get creative to secure contracts and gain support from the community to keep the local economy going. For example, commercial developers may have to provide upfront infrastructure costs and plan for future reimbursement to keep projects on schedule, says Irwin Tauber.

In 2020, many states used emergency powers to place a moratorium on foreclosures and evictions. Local governments urged landlords and tenants and borrowers and lenders to work out deals to avoid financial ruin. Many commercial tenants forced to close their doors eventually had to close their businesses altogether. As the pandemic continues, this may lead to an uptick in evictions or foreclosures for 2021. This complicates the demands for new developments and the ability of investors to afford them, says Irwin Tauber.