We handle commercial transactions, too!
While this blog is often focused on the latest news on the residential side of real estate, our teams wanted to remind you that you can trust us with your commercial files as well. Whether you’re an investor or Realtor, count on us to deliver for you.
The commercial real estate industry is thriving in 2022, even with interest rates rising. After surviving the COVID storm, it continues to recover and expand beyond its pre-pandemic levels. For real estate professionals in the commercial market, it’s more important than ever to understand each sector so you know how to give your clients the most value possible. But we know you’re busy, so we wanted to give you some quick tips on how each sector has weathered the past few pandemic years and the state of the sector today.
Past: Multifamily vacancies skyrocketed at the beginning of the pandemic as renters who no longer had to be close to an office searched for more space and outdoor living areas.
Present: Renters are returning to cities in droves. High interest rates and low housing inventory are combining to keep people renting for longer periods rather than buying a home.
Past: The industrial sector weathered the storm of the pandemic better than any other sector thanks to ever increasing e-commerce requiring more logistics facilities.
Present: In the short-term, supply chain issues have slightly slowed the sector’s growth. However, these same factors are pushing companies to bring their overseas industrial facilities back to the US which should spur growth for years to come.
Past: The retail sector, hampered for years by increasing e-commerce, has recovered from the pandemic surprisingly well as consumers returned to shopping after the lockdowns.
Present: High prices due to inflation have decreased consumer spending in retail stores recently, but the market remains strong. Rents are rising across all types of retail stores while the job market remains strong at 3.6% unemployment.
Past: The office sector was hit the hardest during the pandemic, especially in big cities like New York and Los Angeles, but there is a bright side.
Present: 13 million square feet (MSF) of office space was absorbed from March-May 2022, up from just 3.4 MSF in 2022 Q1. Great job growth and less worry about the pandemic are bringing people back into the office, but more often in smaller cities and suburban areas as office goers want a shorter commute.
Commercial real estate deals are some of the most complicated financial transactions one can make, which is why it’s important to work with a title and escrow provider you already trust. That’s where we can come in for you, just like we do on the residential side of things.