Real estate is a major asset class for businesses, whether a company is in the commercial real estate industry or owns headquarters, remote offices, warehouses, factories, and other properties. There are implications for cash flow, the balance sheet, tax planning, and other financial aspects.

Deloitte recently issued a short paper on some of the considerations, which will appear in this three-part series. This first article addresses real estate reevaluation and accounting for changes in use.

Corporate real estate use saw jarring changes during the pandemic. Many retail locations significantly changed operations, many even closing temporarily or permanently. Others, like grocery stores and pharmacies, became even more critical and valuable. E-commerce drove enormous demand for industrial properties, especially for last-mile and infill service. Offices closed and millions of people started working at home, which raised the question of how much work would be done in common buildings going forward.