The Commercial Inspector | What’s on the Horizon for CRE in 2022

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What’s on the Horizon for CRE in 2022

 January 5, 2022 |  CRE News, Investment, Management |  real estate trends, business tips, building renovation

Commercial real estate has seen its fair share of new developments within the last year. But now things are starting to return to a place of normalcy, which is good news for property owners and investors. Here’s what many experts are looking forward to in the coming year.

Seeing Lots of Green
The commercial real estate market is no stranger to making changes to lower its environmental impact. Especially as new green laws start being adopted, eco-friendly buildings are becoming more and more popular. Upgraded lighting and plumbing to make buildings more efficient are also helping property owners save on their bottom line. In 2022, it’s likely that older buildings will start getting retrofitted to meet green standards. The double benefit of attracting more tenants with updated facilities and helping the environment makes the switch an easy one for property owners.

Flexible Working Environments
With part of the workforce going back to the office, there’s still a need for office space. However, it might not look the same as the traditional working environment. More companies are now opting for hybrid offices to limit the number of individuals in close contact with each other. Younger workers starting to make up the majority of employees have also played a role in shaping the new office building. Having a space that will grow with the company has proven to be a more valuable investment than a standard cubicle arrangement.

Industrial Continuing to Surge
The rapid growth of online shopping has created an urgent need for storage and shipping facilities. In densely populated areas, the issue becomes how to optimize warehouse square footage effectively. There’s also the challenge of last-mile shipping for certain perishable items. As more people start requiring faster deliveries, it’s up to shippers to find a solution. With e-commerce becoming a multi-billion dollar industry, new challenges will await it.

Keeping Retail Alive
With the shift towards digital shopping, traditional retail has seen a steady decline. Brick and mortar store closings have left property owners trying to find new ways to fill vacant spaces. This includes everything from medical care to upgrading the shopping experience to something new. After the last year, the health industry has seen even more growth as people begin to focus on their personal wellbeing. Whether it’s new clinics or fitness centers, they’ve proven to be viable substitutes for old stores.

Vacation Resurgence
Travel opening back up is good news for the hospitality industry. Hotels and resorts were one of the hardest hit, but now they’re starting to see a trend upwards. Making a healthier building has helped draw in visitors that want to avoid getting sick as they travel. Some chains have found success in adapting rooms for traveling professionals’ extended stays. Reinvesting back into the hotel by upgrading the experience for people will help entice customers that want the most out of their stay.

Overall, 2022 looks to be a positive year for commercial real estate. The industry has had to adapt a lot to meet the changing landscape, but it's been successful so far. It’ll be interesting to see what new challenges await the field, and how CRE further rises to meet them.

National Property Inspections is the partner you can rely on for all of your company’s inspection needs. Schedule a consultation with our inspection coordinators to see how NPI can assist you.

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