Services WE OFFER
Commercial Real Estate: By the Numbers
According to Freddie Mac, the National Association of Realtors, JP Morgan Chase and industry insiders, commercial real estate will continue to accelerate throughout 2022 and further into 2023.
The outlook ahead remains positive, with retail and multifamily asset classes rebounding and industrial continuing to thrive.
Let’s Talk Numbers
SECTORS WE COVER
DATA CENTERS
According to the Wall Street Journal, total revenue in the global data storage market in the first quarter was $9.5 billion, with revenue from large cloud providers growing 22% from the year earlier period
DEVELOPMENT
Land development industry revenue is forecast to increase slightly at an annualized rate of 0.6% over the five years to 2027 to reach $13.47 billion.
As demand for multifamily, life sciences and light industrial continue increase over the next few years, higher valuations and lease rates will present excellent investment opportunities
HOSPITALITY
According to the Hospitality Global Market Report 2022 the global hospitality market is expected to grow from $3,952.87 billion in 2021 to $4,548.42 billion in 2022 at a compound annual growth rate (CAGR) of 15.1%.
This large growth rate is in part the bounce back from global restrictions on travel
INDUSTRIAL
With rising shipping costs, tariffs and the pandemic, industrial opportunities are providing high yield returns on logistical and distribution centers and warehouses.
The warehouse automation market is expected to grow by 1.5 times by 2025 to $37.6 billion. Demand for storage and distribution centers along the border has continued to increase leading to higher lease rates.
MEDICAL
The need for medical office space is up and expected to climb further as new growth opportunities have emerged with demand for patients who have deferred cared during the preceding years.
Medical office sales volume totaled $19.6 billion in 2021 – evidence for this stable, income-producing real estate investment class.
MULTIFAMILY
The volume of multifamily investment in 2021 was the greatest year for any asset class in history, with $352 billion of investments and expected to climb throughout 2022-2023.
Multifamily occupancy levels are currently at 96.1% on average and expected to remain above 95% for the foreseeable future. Rents have seen and average 13.9% year-over-year increase with heavy demand for any new or under construction developments.
OFFICE
According to the National Association of Realtors, even though the office sector has seen a decline due to work-at-home provisions with some companies, some variance exists depending on location.
There has been improvements in midsize markets as companies seek more affordable office locations away from major U.S. cities.
RESIDENTIAL
With mortgage interest rates on the rise, some buyers have been priced out due to affordability. However, inventory continues to remain extremely low and construction starts have dropped.
Most homes offered for sale are on the market less than 30 days with some higher density markets averaging less than a week. There continues to be strong demand for housing.
