Vantage Commercial discusses 2022 Commercial Real Estate Trends
The real estate market is continually growing in unpredictable ways. The last two years have put a significant amount of pressure on the industry, however the market continues to bend and adapt. Coming out on top, here are the upcoming real estate trends for 2022 you should be aware of.
Multifamily units are projected to see a 10% increase in 2022. Similarly, to 2020 and 2021, rising mortgage rates, amplified home prices and building activity that lacks demand will all continue to be factors for buyers. According to the National Association of Realtors (NAR), multifamily investors can expect a strong demand in support of the higher rent seen across the country. In 127 of the 390 prominent metro areas, double-digit rental growth was recorded. This is a trend that does not give any indication of slowing down, it will steadily rise in correlation to the market.
Hybrid Work Drives Office Leasing
The pandemic revealed working from home is cheaper for businesses long term. Companies are taking note; however, employees still prefer the chance to leave their home and distractions at times to collaborate with other professionals. Offices have begun hopping on the hybrid band wagon, and changing spaces from dedicated offices to collaborative, fluid workspaces. Businesses realize that giving their employees the freedom to choose, results in better productivity. In turn, companies are opting in for leasing collaborative offices and opting out of purchasing workplaces.
Upgraded Rental Units
Since remote work is on the rise, there is an increased demand for higher-end units. The growing cost of single-family homes combined with renters spending more time in their apartments, has played a major role in this trend. Renters are now upgrading from a one-bedroom to a two-bedroom to solidify they have a place to work each week.
Industrial is Here to Stay
Large or moderate retailers of all sizes are on the hunt for distribution facilities. While Amazon lead in the trend of warehouse storage and facilitation, companies are following suit, taking their inventory practices from “just in time” to “just in case.” E-commerce is looked to for convenience, propelling the need for a logistically sound warehouse, to ensure customers remain satisfied and delivery stays prompt.
The strong housing market and healthy home purchases have encouraged demand for self-storage more than ever before. With an over 42% increase in 2021, the stock market returns were 57% complementarity. As people continue to downsize and work remote, the desire increases to declutter homes, and stow away seasonal items.