Real-estate markets worldwide are getting turned upside down

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  • Offices, hotels, and malls were emptied by the coronavirus. Even as they reopen, the disruption has many thinking we’re looking at a new normal for how we occupy space. 
  • Big firms are rethinking office needs — and some commercial real-estate deals are being put on ice as financing dries up. 
  • A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold-storage space from companies like Amazon. 
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The coronavirus threw the real-estate world into disarray, as people emptied out of offices, hotels, and malls and worked from their homes. The disruption is transforming how people and companies finance, operate, and occupy real estate. 

Big firms are rethinking office needs — and some commercial real-estate deals are being put on ice as financing dries up. Coworking and flex-office firms are struggling under big rent obligations after years of rapid growth. A surge in e-commerce, meanwhile, is fueling demand for warehouse and cold storage space as companies look for new ways to reach customers.

Still, some firms like IBM and Facebook have been pushing ahead with plans for big office spaces, showing that it may be too soon to call and end to the office as we know it. 

Here’s the latest news on how commercial and residential real estate is being upended, and how experts think these markets will play out in the long run. 

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