22 TRENDS DRIVING THE COMMERCIAL REAL ESTATE MARKET in 2022
A customer asked me earlier this week what I thought 2022 had in store for us. Any surprises? So...I put together a list of 22 possible trends for this year:
1. Secondary Markets Will Experience the Fastest Growth
2. Interest Rates Will Increase, possibly dramatically
3. Refinancing will increase as a popular solution for getting cash
4. Investors Will Need to Make Faster Decisions
5. Workers Will Return to The Office, but at a Slower Pace than Companies Want
6. Tenants Want Shorter Lease Terms
7. Property Values and Rental Rates Will Continue to Increase
8. Retail Continues to Evolve
9. Data Centers Will Experience explosive growth
10. Data Scientists Will Become an Important Hire for Commercial Real Estate Firms
11. Industrial and Warehouse Properties Are the Current “Darlings” as Investments
12. The Housing Market Will Continue It’s Hot Streak
13. Multi-Family Still Desirable
14. Construction Costs Will Continue to Rise
15. Building Supplies Will Be Harder to Secure
16. The Labor Shortage in Construction Will Continue
17. Life Science Tenant Demand is Soaring
18. Ghost Kitchens are Leasing Retail Space
19. Growth in Technology, Software and Proptech will continue for CRE Firms
20. Cybersecurity Will Take Centerstage
21. In High Growth States, Self-Storage Will Flourish
22. Values for Commercial Real Estate rose by 24.4% in 2021 and will continue to increase because of replacement cost
By: Jason Dannatt, Commercial Resource Capital