Trends That Will Drive Commercial Real Estate in 2022

The previous several years have been highly volatile for the commercial real estate market. On the one hand, the emergence of COVID-19 and the rise of the remote worker reduced demand for this sort of property dramatically, except for industrial real estate, which remained strong throughout the pandemic.

The whole real estate business is undergoing a digital revolution, relying more heavily on AI and data centers, resulting in massive internal shifts and an entire infrastructure revamp.

What does this mean for today’s commercial real estate, and what factors will shape its growth through 2022 and beyond? The top commercial real estate trends for 2022 are as follows.

E-commerce driving warehouse leases:

When debating it, most people in the business prefer to point out the negative impacts of the e-commerce sector’s rise over the previous several years on the retail property market. The commercial real estate industry should benefit from this development. The increased amount of items exchanged online worldwide necessitates the need to store these commodities before delivery securely. This could push warehouses and comparable CREs into the limelight, positioning them as one of the most attractive commercial real estate industry sectors.

Demand for leaner and quicker construction:

If the past taught us anything, entire industry frameworks might be modified in the blink of an eye, and effective long-term planning is no longer possible. The present geopolitical climate suggests that nothing will change soon. As a result, a more agile industry and more efficient construction operations are becoming increasingly necessary. Modular building construction will most likely be the solution to this issue. This alternative also gives an eco-friendlier approach; therefore, expect to see a rising number of modular structures.

Fitness and healthcare:

Countless businesses were forced to close due to the COVID-19 epidemic. There were no similar issues in the healthcare industry. The epidemic highlighted how strained the national health infrastructure is. In the coming years, this business will undoubtedly expand. This growing focus on public health will benefit the fitness and personal wellbeing center. Naturally, all these companies and sectors require very specialized types of infrastructure, so expect to see additional investments in that area. The industry will remain sustainable for the near future because of the growth of the senior population.

Changing the office spaces:

As a result, we’ve seen how the rising number of remote employees is causing a considerable portion of commercial office space to go unused. Therefore, what can investors do to attract high-paying clients who aren’t concerned with the location or square footage? The additional space might provide various facilities to the remaining employees, such as an open office idea, a location where they can work out during their breaks, or full-scale gaming rooms. All these things have the potential to lend commercial premises. Therefore, we may expect to see vacant office space utilized for these other uses.

We hope these few pointers have given you some insight into the commercial real estate market’s overall direction for the rest of the year and beyond. The breakout of COVID-19 caused extensive damage to the whole industry and the digital revolution, and it is only now beginning to recover. However, after this transition, the market we will have will not be the same as the one we left in 2020. Nonetheless, current developments offer us reason to expect that the sector will be able to adapt and overcome current challenges.