It’s hard to believe that the year is already halfway over. It’s time to check in not only with our New Year’s Resolutions but also with the forecast for the commercial real estate market. The world and market are finally shifting back to normal. As we transition into a post-Covid-19 life, commercial real estate is expected to have a tremendous rest of the year.
As e-commerce grows, so does industrial real estate. Warehouses and distribution centers are popping up to keep up with the high demand for online shopping. Likewise, as quick shipping times become expected, companies are forced to keep more in stock at warehouses. Therefore, more square footage is necessary to hold stock.
Office real estate is expected to remain stable throughout the remainder of the year. While some have jumped back into office life, many companies are still debating whether to return to the workplace. It may take the next few months for businesses to decide which is the right move for them. Furthermore, office real estate varies from city to city. Major cities are seeing a decline in office real estate while smaller cities are not impacted as much.
On the other hand, hospitality is likely to grow this year. With many people tired of being stuck at home, travel is on the rise. Commercial real estate properties such as city centers and hotels are in demand.
Another trend in commercial real estate this year is companies’ confidence in long-term leases. Since the economy has stayed stable, businesses are signing longer leases. Overall, commercial real estate has a hopeful outlook for the rest of 2022. Whatever the rest of the year brings, we’ll be here to navigate the highs and lows.