The past few years have been a veritable roller coaster — for everyone, but certainly the commercial real estate (or CRE) world. After a slow 2020, 2021 was a year of growth for the industry. Now, we will see explosive growth for commercial real estate in 2022. In fact, now that we’re in a higher interest rate climate, the number of CRE deals is “poised to soar further.”
There are several reasons why this may be the case. Let’s take a quick look at the events driving 2022 commercial real estate trends so we can prepare ourselves for the coming months!
Trends Driving Impressive Growth in Commercial Real Estate This Year
In the midst of a lot of uncertainty, here’s what we’re seeing that points to CRE growth:
Real estate often provides a hedge against increasing rates of inflation.
Now, investors who want to safeguard their portfolios and their wallets are diversifying their assets by purchasing commercial real estate. This influx of interest is causing a lot of unprecedented movement in the industry!
Smaller cities are gaining a lot of interest.
Charlotte, Phoenix, Atlanta—these secondary markets are becoming centers of newly-available jobs and young, mobile populations. As these smaller cities grow, their real estate markets will as well.
It’s more expensive to initiate a new build right now—so existing assets are largely more valuable.
The labor shortages, up-and-down economy, and disruptions in the supply chain that occurred starting in 2020-2021 made the difficulties associated with new construction very clear. New materials cost more, and many construction firms are scrambling to find skilled and reliable workers. This has shifted a lot of demand to already-built properties.
So, we can expect commercial real estate markets across the nation to grow. Can we make more granular predictions?
Keep an Eye on These Areas of Explosive Growth in Commercial Real Estate
As it turns out, there are some specific developments that may be worth keeping an eye on in the coming year. For example:
Office spaces, after taking a direct hit over the past few years, should pick up a little more.
Many companies are reconsidering, renovating, and investing in their office spaces post-pandemic to help make working in an office a more pleasant experience. Some are ditching the office entirely; others are sizing up. As a result, there’s a lot of movement in this sector.
Senior living spaces are going to be more and more in demand.
Occupancy of residential facilities fell during 2020 before slowly increasing in the latter half of 2021. Progress through the pandemic and vaccination rates will result in a return to these spaces. (In addition, the coming wave of Baby Boomers requiring senior housing will keep this segment of the market in demand.)
Self-storage spaces will continue to be popular.
Millions of people across the nation have spent increasing amounts of time at home. They’ve done a lot of cleaning and decluttering. The Atlanta metro area alone has recently added over eight million square feet of self-storage space.
In the midst of all this growth, it’s key to know where to invest—and what types of CRE investments are best poised to retain their value.
We may be biased, but we feel there’s a clear answer to that question.
Turn to GA-Based Steel Contractors to Strengthen Your Commercial Real Estate Plans This Year
Looking for a solid investment? Steel buildings are economical to build and yield long-lasting results. That’s not all. There are many reasons to invest in commercial steel buildings, including:
- Flexible floor plans, and ease of further projects. Remodeling steel buildings is relatively easy, which can make it very simple to customize an existing structure or upgrade your investment.
- Top-tier energy efficiency. A well-insulated steel building should have low heating and cooling costs, which will help you save money over the long term.
- Negligible maintenance. A well-designed steel building shouldn’t require much upkeep. Your steel building will look good and remain durable for a very long time without needed repairs.
Whether you’re ready to capitalize on 2022’s commercial real estate trends or need help bolstering your current assets, the team at Peak Steel Contractors is ready to help you. Consult our team today to learn how steel buildings can be an incredible investment, and how to get started with strategic building design.
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