2021 is coming to a close and 2022 is quickly approaching! This past year was a year of growth and comeback from the hits the commercial real estate industry took in 2020 because of the pandemic. What does 2022 look like for the industry and what can we expect? Keep reading for our 2022 commercial real estate predictions!
Multifamily to be Strong
As we have said before, the multifamily sector will always be in demand, because people will always need a place to live! With home and mortgage prices rising, many look to multifamily options to call home. Most markets across the country are seeing higher rent prices as well, which is all good news for landlords.
Self Storage to Remain Strong
With the housing and multifamily markets so strong right now, we expect the self storage industry to remain strong. Of course, this will change with the housing market. If more people end up going back to work instead of working at home, that might reduce the need for extra storage space. We will see as the year goes on.
Office and WFH to Remain Split
Work from home trends really picked up in the past two years because of the pandemic. Although, as effects of the pandemic lessen, millions of people are going back to the office each month. This past year we saw a stabilization in office space rental rates, which is great. While the office remains the central hub for business, many employers are offering flexible work from home options for their employees still. We expect the in office/work from home split to remain pretty equal this year as well, as many people have gotten comfortable with working from home.
Hospitality and Traveling to Accelerate
With pandemic effects lessening, many are eager to get out and begin traveling again. That being said, the hospitality and traveling industries are expected to accelerate in 2022. Additionally, any traveling that accommodates business will be booming as well. People are ready to get out there and get back to normalcy!
Retail to Remain About the Same
Brick-and-mortar retail stores took a substantial hit during the pandemic and many switched to online shopping. Although, this past year we saw a dramatic decrease in retail store closures, and an increase in new openings! We expect online shopping and in-person shopping to remain pretty uneven and ever changing.
Industrial to be Strong
The increase in e-commerce has created an even bigger demand for manufacturers, distribution facilities and logistics operations. We expect industrial space to continue to be in high demand this year as those trends continue.
Overall, we expect the 2022 commercial real estate industry and economy to continue to bounce back this year. We believe that any setbacks from covid-19 will be short lived this year and many will continue to thrive. We are excited for the year ahead and all of the possibilities it brings! If you are interested in buying, selling or leasing commercial space in 2022, give us a call and let’s get on the search!