Michael Stortini Discusses How the Pandemic Changed Real Estate Development Forever

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On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and the world changed forever. Every industry and sector pivoted and flexed to meet the new normal. In the world of real estate, the changes were seismic. The pandemic ushered in an entirely new world of housing and real estate. Seasoned real estate developer and founder of Apennine Development Co., LLC, Michael Stortini, explains some of the most prevalent changes the real estate development industry experienced as a direct result of the pandemic. 

The White Hot Residential Real Estate Market 

The coronavirus pandemic had profound effects on the residential housing market. As workers ditched the office for work-from-home situations, house flipping and residential real estate investing spiked dramatically. In fact, real estate analytics firm CoreLogic noted that investors purchased 28% of single-family homes in the first segment of 2022, which set a record. Because of the increase in remote work, buyers wanted bigger homes in lower-cost areas. This increase in demand transformed the initial slump in home sales at the beginning of the pandemic into a blazing hot seller’s market. 

Michael Stortini explains, “Buyers and investors were snapping up homes like crazy. Many buyers were waiving home inspections and paying significantly more than the asking price. When this was coupled with record low mortgage rates, it created the perfect opportunity for home flippers and home buyers alike.”  

The Pandemic Has Advanced Industry Innovation

Virtual listings were a thing pre-pandemic. But after the pandemic, virtual listings became the norm instead of the exception. At the same time, technological advancements have made the buying and selling process faster and more convenient. Michael Stortini continues, “The new technologies that were already advancing the real estate purchase process have seen dramatically higher rates of adoption. This has made the closing process significantly faster. Banks are leveraging more automated loan underwriting tools to shorten timelines. Consider this, a few years ago, it may have taken two or several weeks to get an appraisal. Today, it’s a week or less.” 

Trends in Commercial Real Estate

While the residential real estate market was white hot, the commercial market began to fizzle. Much of this change was attributed to the same factor that ignited the residential market — work from home. Because of the new work-from-home environment, commercial office spaces had to evolve to accommodate this new environment. Stortini explains his observations, “Many CEOs expressed concerns over workers spending less time in the office, resulting in reduced in-person collaboration, less innovation, reduced relationship building, and the erosion of business culture. However, this didn’t mean less footprint in the office space. It has meant a transformation in the configuration of office spaces. 

Companies began shifting toward open spaces to encourage collaboration. Moving forward, we can expect more efficient, smarter designs with a larger focus on collaboration areas. Other innovations include more touchless features, enhanced cleaning protocols, and improved indoor air quality measures. ” 

 

 

Michael Stortini Explains The Impact of Urbanization on Real Estate Development

Urbanization refers to the process of people moving from rural to urban areas, resulting in the growth of cities and metropolitan areas. This trend significantly impacts the real estate industry as urban areas become more densely populated, and demand for housing, commercial, and mixed-use developments increase.

As a leading real estate developer, Michael Stortini has gained valuable experience in the industry, and his expertise has enabled him to overcome the various challenges faced by developers in urban areas. In this blog, we will explore how urbanization has impacted real estate development and the successful career of Michael Stortini.

The Changing Landscape of Urbanization

Several factors, including population growth and increased economic opportunities in urban areas, have shaped the landscape of urbanization. This trend has resulted in significant changes to the real estate market, including a higher demand for mixed-use developments that offer a range of services and amenities in one location.

As urbanization continues, developers must also embrace innovative design solutions that cater to the needs of modern city dwellers. Technology and sustainability also play a critical role in the future of urban development as developers strive to create more innovative, more sustainable cities that promote a high quality of life for residents while minimizing their impact on the environment.

The Impact of Urbanization on Real Estate Development

Positive Impact of Urbanization on the Real Estate Industry

Urbanization has significantly impacted the real estate industry, both positively and negatively. On the positive side, the demand for commercial and residential properties has increased as more people move to urban areas for better job opportunities and a higher quality of life. This trend has led to the growth of urban areas, creating new opportunities for real estate developers to build and invest in properties in these regions. Rising property values in urban areas have also contributed to higher returns on investment for developers and investors.

Challenges Faced by Real Estate Developers in Urban Areas

However, real estate developers in urban areas face several challenges. One of the most significant challenges is the high land and construction cost, making it difficult for developers to build affordable housing and commercial properties. In addition, the limited availability of land for development in urban areas also presents a significant challenge. Regulatory and zoning restrictions can also make it difficult for developers to build properties in urban areas, limiting their options and slowing development.

While urbanization presents several opportunities for real estate developers, it also comes with several challenges. As the demand for urban properties grows, developers must navigate these challenges to take advantage of the potential opportunities available in these regions.

Michael Stortini’s Successful Real Estate Developments

Numerous successful projects in urban areas have marked Michael Stortini’s career in real estate development. His expertise in navigating the challenges of developing properties in urban areas has enabled him to build thriving commercial and residential developments. For instance, Stortini has successfully created commercial properties such as shopping centers and office spaces that cater to the growing demand for commercial properties in urban areas.

He has also built several residential properties that offer affordable housing solutions for individuals and families. His mixed-use developments, which incorporate a blend of residential, commercial, and retail spaces, have also successfully met the evolving needs of modern urban dwellers.

Stortini’s success in real estate development can be attributed to his ability to understand the market’s needs and leverage innovative design solutions that cater to those needs. His projects have also been able to overcome the challenges of developing properties in urban areas, such as high land and construction costs and limited availability of land.