CRE Trends to Watch
As Covid-19 continues to transform many aspects of life and business, the commercial real estate (CRE) industry is optimistically adapting to changes. Various sectors see development in office space, retail, residential and industrial spaces—and getting a jump start on what’s ahead.
Here are the top CRE trends to watch in 2022:
Hospitality to rebound with growing vaccination rates and business and leisure travel
With business travel expected to catch up with leisure travel in 2022, the hospitality industry is set to rebound. According to a recent Taylor Johnson report, both existing and new projects are preparing for this year’s uptick in business travel. Existing hotels are upgrading facilities while new developments that were tabled in the last 2 years are finally under construction. This is especially true in areas that offer mixed-use components.
Multi-family and industrial remain preferred assets
These sectors have continued to perform well throughout the pandemic, attracting significant CRE investor interest as stable long-term investments. According to a recent report, multi-family investment grew by 33% in 2021, while industrial vacancies are at a record low 4.1% as rents continue to grow.
The office bounce back prioritizes health and wellness collaboration
A recent survey showed that 85% of workers want to go back into the office at least some of the time. Work from home is not expected to be the end of the office space as we know it, just a shift in the way we approach it. Prioritizing health and wellness, including access to fresh air and greenery, and being flexible to accommodate hybrid work schedules signals the start of the shift.
Solutions to supply-chain woes: be close to the customers you serve
Manufacturers, retailers, and third-party companies are moving to high-population areas, highways, and airports to find solutions to supply chain challenges. Rising transportation costs and insurance costs drive the development of distribution and logistics centers to manufacture products locally.
Millenials are moving to the suburbs
A recent Cowen survey found that the number of millennials living in the suburbs grew 4% between 2019 and 2020, with those numbers continuing to rise. One of the biggest reasons for the move out of cities has been to reduce the risk of contracting COVID. A more relaxed pace of life, the ability to work from home, and more value for money are motivating factors for Millennials prioritizing their work-life balance.
About Miller’s Landing
P3 Advisors is creating Miller’s Landing, a new mixed-use development in one of the most popular home towns in Colorado. Miller’s Landing will feature a pedestrian and bicycle-friendly town center, modern offices and multi-family housing.
The new development is within easy walking and bicycling distance to downtown Castle Rock and nearby Philip S. Miller Park, one of the region’s top outdoor recreation destinations. Miller’s Landing also features large swaths of open space with panoramic views of the Colorado Front Range.
Stay connected with Miller’s Landing, an ideal location for retail, dining and entertainment businesses, corporate headquarters, satellite offices, and offices for smaller businesses.