Thinking about investing in commercial real estate in 2022? Specific sectors of commercial property are forecast to perform better than others. One way to maximize your investment is to leverage the research conducted by commercial real estate industry experts before making your decision. Read on to learn which type of property to invest in over the next year.
Surveys from three prominent commercial real estate industry groups predict increased market activity for the close of 2021, 2022, and beyond. That’s good news for real estate investors in an industry hit hard by COVID-19. Even as some companies have shifted to allow employees to work from home, we’re optimistic about commercial real estate in 2022.
In the Society of Industrial and Office Realtors (SIOR) Sentiment Snapshot Survey for Q2 2021, 79% of members reported that commercial real estate transactions are proceeding on schedule, up from 32% in the second quarter of 2020.
Over the last year, deal activity has more than doubled for office and retail properties, according to a survey conducted by NAIOP. 92% of respondents report increased deal activity for industrial properties, up from 71% in 2020. In comparison, 76% of respondents report an increase in activity for multifamily properties, up from 58% in 2020.
The Urban Land Institute (ULI) reports that U.S. commercial real estate transaction volume is expected to recover relatively quickly from the 30% dip in transactions in 2020. The ULI’s real estate market predictions include transaction volume of $500 billion in ‘21, $550 billion in ‘22, and $590 billion in ‘23.
According to SIOR, NAIOP, and ULI, investors should consider industrial properties when evaluating their 2022 portfolios. Industrial properties will continue to perform better than multifamily rental projects, though they are close behind.
Business for the balance of 2021 and into 2022 should be robust in the Central Florida region which includes the Brevard County Melbourne Palm Bay Titusville markets. When evaluating 2022 property investments, Florida continues to be an in-demand location for people to live, work, and play. The National Association of Realtor’s Commercial Market Conditions Index for Q2 2021 reports that Florida has five of the top ten markets with the strongest overall conditions in the office, industrial, apartment, retail, and hotel markets.
If you’re looking for an opportunity to invest in commercial real estate, consider Florida’s Space Coast. Contact Ullian Realty‘s team of Brevard County real estate experts. We specialize in office, industrial, commercial, retail, and investment property in the Melbourne, Viera, Suntree, and Palm Bay, Florida real estate markets.
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