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It’s critical for investors to keep up with the newest commercial real estate trends and learn how to get the most out of their money. If you’re new to commercial real estate investing, we’ve compiled a list of the top 5 current trends as well as those predicted for the coming year. You will then be able to determine the best course of action for your funds.

The impact of the pandemic on the commercial real estate (CRE) market will have a long-term influence on a number of market sectors. The genie of the remote workforce isn’t going away, and the reliance on e-commerce and technological advancements for home delivery will continue to upset retail. There are reasons to be optimistic, but not in all industries, and there are still a lot of emperors without clothing out there claiming that everything will be OK. There are booming CRE sectors, some of which will merely need to pivot to adapt to the new normal, while others may need to fully reinvent themselves.

1. Multifamily Real Estate Is Back On The Rise
Pwan Max, a pioneer in property management technology for the apartment industry, has witnessed firsthand how the multifamily real estate market has recovered more quickly than other real estate sectors. It’s possible that some markets had little or no impact, and that some sectors are actually stronger now that the lockdown has ended. Yes, government assistance has aided, but the general market has quickly recovered and will continue to do so in 2022.

With minimal vacancies, stable rental prices, and substantial development for the new year, the multifamily market is booming. Investors are in agreement: According to recent data, market-rate apartment sales totaled up 35% over the previous year. This corresponds to the average growth rate for the previous five years. Employees no longer need to be near their physical office site, therefore apartments in secondary markets or further from main cities may benefit from this remote work trend.

2. Industrial Real Estate Thriving at a Time of Crisis
Due to the rise of e-commerce, the industrial industry had a big increase during the pandemic, and it appears that this trend will continue through 2022. E-commerce growth increased to 44.5 percent in Q2 from 14.8 percent the previous quarter, putting pressure on retailers, wholesalers, and third-party logistics providers (3PLs) to reduce shipping costs. Industrial real estate continues to be in high demand.

3. Office Real Estate Is in Peril
Because many professionals worked remotely during the epidemic, having a flexible work location is no longer a luxury, but rather a necessity. Businesses have switched to a remote workforce from a “always in-person” workforce, and the vast majority of that workforce prefers it.

This trend, in our opinion, isn’t going away anytime soon. This will result in a considerable drop in the demand for office space. Companies are not renewing their leases and are drastically lowering their square footage, all of which point to negative developments in the commercial real estate market. We’ve seen that CRE owners aren’t talking about the exodus and are instead telling everyone who would listen that everyone is coming back. They may even mention the need for flex space, but not how flex space will save space in the long run.

Some CRE owners may be working behind the scenes to keep corporations from leaving their buildings or creating new uses, but they are facing a liquidity pressure to keep up with loan payments. Serviceability of loans to keep CRE enterprises alive might be difficult or impossible.

4. The Use of Adaptive Re-Use Will Be Critical
The change to a mixed-use property is one of the saving graces for the struggling office and retail real estate markets, as apartments in a mixed-use setting command 13.9 percent more rates than apartments that are not. We feel this is the most significant potential in CRE, with one strong sector able to support the faltering one.

CRE real estate executives can repurpose an abandoned structure in a variety of ways to revitalize an area. Converting unused office or retail space into apartments or nursing care facilities, for example, can make the most of available space while also meeting market demands. Apartments can be built on top of shopping malls, while warehouse storage can be built below office buildings. Location, building structure, cultural value, sustainability, and return on investment are all important criteria in determining the best use of a property.

While some office building owners are anticipating a large influx of people returning to work, others are envisioning a future that blends the best of both worlds, addressing housing scarcity while also enlivening office and retail space.

Investing with a Private Real Estate Investment Firm Has Its Benefits

When done correctly, commercial real estate investing can be a good financial move. You want to put your money in the hands of people who can:

Investigate the real estate market, as well as the social and demographic trends.
Look for intriguing investment possibilities across a variety of asset classes.
To ensure the success and expansion of the properties in which they invest, they should keep a hand in the operation and management of the properties.

https://pwanmax.com/blog/2021/09/06/real-estate-investment-guide-for-beginners/

Regulatory and compliance intensity, heightened risk of title uncertainty in high profile locations, resolute enforcement of city master plans, and innovative financing strategies top experts’ list of trends to watch in the real estate sector in 2022.

Another top trend on the experts’ list is the deployment of appropriate building technologies which, they hope, will move the sector from ‘building’ to ‘manufacturing’ houses, adding that the sector has seen the launch of one or two major digitized real estate assets and online investment vehicles.

The experts, who spoke at an event hosted by the Nigerian-British Chamber of Commerce (NBCC) with the theme, ‘Nigerian economic outlook 2022: Intersection with the real estate sector –Top real estate trends to watch’ noted that despite the obvious effect of inflation, foreign exchange challenges, insecurity, and high unemployment rates, Nigeria’s economic fundamentals remain strong.

The experts noted further that the real estate sector, after four straight quarters of positive growth, now represents an opportunity for steady growth and expansion in the economy, adding that the sector, will be a key driver for the country’s recovery alongside agriculture, agribusiness, agric technology, healthcare and fintech sectors.
Read more:https://dsmproperties.com.ng/real-estate-trends-to-watch-as-sector-recovers