The Blum Brief

2022 Commercial Real Estate Trends from Investment Advisors

February 24, 2022

We're more than halfway through the first quarter of 2022, and the investment advisors at NAI Latter & Blum are weighing in on their commercial real estate predictions and trends for the rest of the year.

DEI

Elizabeth Wilke

"For 2022, I’m most excited about the growing trend for better models of diversity, equity, and inclusion (DEI) in commercial real estate (CRE). With CREW Network's recent launch of CRE Pledge for Action, I look forward to the advancement of inclusivity practices as more CEOs across our industry come on board. And, as CREW NOLA President Elect 2023, I am eager to assist my colleagues at CREW Network with this campaign as it moves forward." - Elizabeth Wilke, Strategic Asset Advisor

ESG

Jeff Wilke

"I think that Environmental, Social and Governance(ESG) will be increasingly factored into commercial real estate investment analysis and decision making. In 2022, ESG may grow in awareness like the supply chain has in the second half of 2021." - Jeff Wilke, Gulf Partners Capital Markets

SFR, BFR, and Self Storage

Brennan Spurrier

"The post-pandemic era has altered CRE in a variety of ways. One of these being the tremendous growth of the Self Storage market. Strong residential markets have spurred demand for storage and will continue to do so in the beginning portion of 2022. As a result, the Self Storage Industry has emerged as one of the top asset classes of the year! Another asset class that has shown tremendous growth in 2021, is the SFR (Single Family Rental) & BFR (Build-For-Rent) market. Based on various reports, we have seen the SFR market raise it's value to 3.4 Trillion! The SFR & BFR market is still relatively new, I believe popularity will surely continue to grow into 2022. The post-pandemic era has been filled with it's fair share of challenges for many. As we continue to recover and resume our normal way of life, I expect to see these markets continue to boom and produce a tremendous 2022." - Brennan Spurrier, Self Storage and Home Portfolio

Mathes Hughes

"I am looking forward to seeing continued enthusiasm for development as well as acquisition and redevelopment of dated properties, specifically repurposing large spaces for multi-family / self-storage. The Single Family Rental (SFR) asset class is becoming ever popular with younger generations looking for their first step into Commercial Real Estate, which in turn creates a diverse market of potential buyers and sellers. Build for Rent (BFR) communities are becoming increasingly popular with institutional investors, which I believe will continue into 2022 due to the strong desire for "Single Family" housing. 2022 in my opinion will be about repositioning and securing stable, secure investments for the uncertain climate we now live in and filled with opportunities for redevelopment.” - Mathes Hughes, Home Portfolio

Supply Chain and Logistics

Randall Boughton

"2022 will see an expansion in logistic facilities in tertiary markets. Major population centers are running short of land that can be permitted for distribution and industrial uses. Smaller markets across the US can help ease the supply shortages with their rail, barge and Interstate access. Louisiana should receive our share of this expansion with the new port expansions and developments." - Randall Boughton, Supply Chain & Logistics

Work from Home and E-commerce

Chris Town

"Trending for 2022 is the momentum for compressed cap rates in several sectors, specifically Industrial and Multi-Family. The trend towards Work from Home continues with the uncertainty of our Virus captured populace. The E-Commerce sector will continue to outpace others given technological advances in that field as well as the aforementioned Virus world in which we now find ourselves living in. All in all, 2022 should be a very good year for most all of Commercial Real Estate." - Chris Town, Home Portfolio

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