Although most have stayed optimistic about commercial real estate despite the effects of the pandemic in the last two years, the industry itself has experienced tremendous change. These changes will continue to impact the commercial real estate market and alternative capital lenders like us in 2022. Here are a few notable commercial real estate trends to be aware of as we embark on the new year.   

Trends To Watch in 2022

1. Moving Back to The Coasts: Over the past year, a considerable number of people moved from popular coastal cities to Nashville, TN, Austin, TX, and other booming hotspots in the United States. However, multifamily properties in New York, Los Angeles, and other coastal cities have started to return to pre-pandemic vacancy levels. However, tourism lodging and on-site workers are proving slower to recover.
2. Hybrid Work: The future of office spaces is still largely unknown since the pandemic changed how many companies work across the U.S. However, even large tech giants committed to fully remote positions are leasing offices across the country. Even with the employer’s desire to get back to an in-office environment, employees are seeking fully remote opportunities.
3. Rental Unit Upgrades: With the increasingly competitive single-family home market, renters are opting to upgrade their units since they are spending more time at home. For example, people are upgrading from one-bedroom to two-bedrooms to accommodate a dedicated workspace.
4. Multifamily Recovery: The multifamily and real estate markets have mostly recovered from the pandemic. In fact, the national vacancy rate has declined 8.8% over the last 12 months. We suspect this trend will continue to evolve in the upcoming year.
5. Impact of E-commerce: The use of E-commerce increased with the rise of COVID19, but most people are still wanting to eat out at restaurants and shop at brick-and-mortar stores. American adults are growing increasingly comfortable shopping in stores again, with roughly 81% now willing to go back to in-person shopping. We expect retail vacancies to continue to decline as consumer confidence increases.

Commercial Real Estate Opportunities

• Affordable housing developments: Mixed housing developments made up of market, workforce, and affordable-rate units are essential for increasing the affordable housing supply.
• Updated Infrastructure: An initiative to update infrastructures like bridges and roads, which would shorten commutes, enable quicker e-commerce deliveries, and improve the economy. This move would benefit commercial properties in the immediate vicinities.

We hope you’ve enjoyed learning more about our 5 Commercial Real Estate Trends to Watch in 2022. If you still have further questions about alternative financing options that would be best for your future goals, please contact us by submitting a form online, email us at info@bccfirm, or give us a call at 404-602-9100. To stay up to speed on all things Barrington Commercial Capital, follow us on Facebook, Twitter, and LinkedIn. And lastly, sign-up for our monthly email to stay informed of the latest commercial capital options available to you and your business.