Adaption is key to survival in any industry. The real estate market has proven itself up to the task throughout the Covid-19 pandemic. Rolling with the changes, well-planned system upgrades, and a willingness to learn and adapt has meant that real estate is coming out on the other side.
Commercial real estate has probably suffered the most in the property market. This is because many businesses still have employees working from home, or have moved into smaller office buildings to keep costs down.
But as things settle into “the new normal,” commercial real estate is making a comeback. With this in mind, what should we look for when it comes to the best places to invest in real estate and market trends for 2022?
Out With the Old
2021 has been a difficult year still for many businesses. Although things are starting to ease up, many are still recovering from lockdown restrictions and trying to adapt in case of more. But a few good things have come out of the chaos when it comes to commercial real estate:
- Adapting or flexibility in brand trends
- Establishing secure business spaces
- New ways to increase efficiency
- Recognizing challenges or vulnerabilities
Time to Invest in Real Estate
It may still seem like there is a limited need for office space or industrial properties with so many employees still working from home. Despite this – or because of it – it may be the ideal time for commercial real estate to invest or expand. There are still business owners looking for spaces at good rates, and this might be the best time to do it.
Multifamily Properties
There is also a strong call for investing in multifamily properties. Investments such as this offer a great return. Many of us are looking for added ways to bring in an income, and multi-family homes are a great real estate choice. While they are a pricier investment, they are easier to finance because they generate their income.
E-Commerce on the Rise
E-commerce, which was on the rise in 2020, has only gained momentum in 2021. The emerging real estate market trend suggests that companies are investing in commercial real estate to use as warehouses, with no signs of slowing down. Many businesses that have online shopping options are investing in larger spaces and backup options to prevent the risk of shortages.
In With the New
With more lockdown restrictions threatening all the time, the long-term future of commercial real estate is uncertain but well on its way to recovery. Business rescue funds are making it possible for small companies to take opportunities to invest in commercial real estate.
Investors should watch for great deals on leases in the coming year as properties open up for potential office buildings. Investment in industrial properties is on the rise, and this should continue as investments grow into the new year.
The Best Places to Invest
So, you have decided to invest in some real estate. Whether it is for your own business to use or whether you are going to rent it out, there are few things to consider when choosing a location.
The best way is to look at the location as a whole. What are the attractions, what is the infrastructure like, and what lends itself to the business that you would be taking with you? Other things to consider are:
- Job growth
- Population growth
- Cost of living
- Future value of the real estate
- Potential income
3 Top States to Invest In
These three states were selected by the NAR (the National Association of Realtors) as some of the best states to invest in real estate. Taken into consideration for this were the demographics, housing, and industrial and commercial markets for these areas. No matter the type of real estate, these are the up-and-coming places to consider.
Raleigh – North Carolina
The Raleigh / Durham area in North Carolina has a very large student population, with a young demographic moving there for work reasons. There are plenty of high-tech jobs available in The Research Triangle. This also contributes to the lower-than-average rate of unemployment and higher-than-average income bracket.
Texas
Austin has a booming job market with a low cost of living. The city has also offered a tax break to any company that relocated there, and several big companies have taken them up on this offer, creating a bustling economic hub. Relocations to Austin have jumped in the last year, and it continues to draw new residents.
Dallas has a hugely diverse economy, with many job possibilities on every income level. This makes it a great investment for commercial property.
Office buildings, industrial properties, and multi-family properties are all prime investment opportunities. Not only are the business possibilities endless, but it is also more cost-effective to rent on a multi-family property than to buy your own house in Dallas.
Las Vegas – Nevada
Probably one of the most volatile real estate markets in the US, Las Vegas also has the best recovery rate. With the diverse business environment, low cost of living, and no state taxes. It is a top location to invest in real estate, especially on the commercial side.
Tourism and entertainment have flourished there for years. Recently the market has opened up to high-tech, health, and commercial real estate businesses.
Commercial Real Estate Future
Even in uncertain times, the commercial real estate industry continues to adapt and move forward. Storage and warehousing for many businesses continue to grow and thrive and will continue to do so.
Office buildings are still a solid investment. Employees are starting to return to work, and companies are looking for different premises to use that better suit their needs.
The best states to invest in real estate still offer thriving and diverse business opportunities, making relocation worthwhile for many companies. So do your research and when you are ready with your investments, contact us to start the application for your real estate journey.
