We interviewed Alexis Shahriar Assadi, who is a financier operating out of Vancouver, British Columbia. He is the CEO of both Pacific Income Capital Corporation and Assadi Private Capital. Alexis Shahriar Assadi’s practice involves capitalizing real estate projects - mostly through debt financing but also equity if appropriate. We talked about the business climate during COVID-19.

First of all, how are you? Have you and your loved ones been healthy during this time?

Yes, thankfully nobody I know has had their health impacted by COVID. I’m fortunate to be happy and healthy. Thanks for asking.

What has Vancouver been like during COVID?

Well, the city basically shut down a few months ago once COVID became a reality here. I remember walking through my neighbourhood in the middle of March and thinking that the area had become something of a ghost town. It was quite sad, actually. In fact, I remember feeling a brief pang of panic as I contemplated how my own business interests might be impacted. If everyone else was shuttering, then what was about to happen to me?

People generally did a good job of respecting the physical distancing rules in Vancouver. They’ve since been loosened a bit, so lots of restaurants and stores have reopened. But everything is different; a lot of one does is at half-capacity. I tip my hat to all the businesses that managed to adapt to COVID, especially restaurants. A lot of operators are impressively creative.

What about your businesses? Have they been affected?

Thus far they have not been hampered in terms of loan payments and defaults. Things have pretty much remained the same - knock on wood. But I don’t think my business interests are a good representation of the lending industry. It’s my understanding that borrowers across Canada are requesting mortgage payment deferrals, which surely will hit lenders’ bottom lines.

What are your thoughts on how COVID will impact real estate?

I wrote an article last year called Alexis Assadi: Why You Should Be Skeptical of Commercial Real Estate. My position was that the internet is reducing the need for office space, which therefore makes commercial properties riskier than ever.

I think that risk has only increased now that millions of additional people are working from home. Companies are asking themselves, “Why spend all this money on leases when most of our staff can work at home for free?”

Keep in mind, too, that this is only the beginning. Right now technology only affords us video calls and online messaging. But who knows what will be developed in the future to eradicate the downsides of working from home, such as loneliness and lack of productivity?

We will probably reach a point within the next few years where not only do employers and employees prefer working remotely, but their customers prefer that set up, as well. In my view, that will be the nail in the coffin for a lot of commercial real estate like office buildings and malls.

Will anything good come out of COVID-19?

Notwithstanding the trauma that families have had to endure because of it, I’m sure there will be advancements that occur as a result of the pandemic. The item that immediately comes to mind is scientific development, which will probably first be manifested in the form of a vaccine.

In a way, it’s also good for the West to realize that we’re not immune from widespread disaster. I think we typically associate disease (Ebola, for instance) with poor nations. But infections do not respect borders. We live in a world where international travel is the norm. Not only does globalization promote the spread of ideas and cultures, but it makes it easier for disease to spread. That’s a reality that we need to come to terms with.

On a personal level, I never liked shaking hands. I find it gross. I’ve always given people a fist-bump for that reason. I hope COVID eradicates that practice.

Thank you, Alexis Shahriar Assadi, for the interview. Do you have any closing words?

My pleasure. Yes, listen to medical professionals and the scientific community. They are the only ones qualified to have an opinion about how to be safe and limit the spread of COVID.