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3 Post-Pandemic Trends On Real Estate Investment
What types of real estate investments have the potential to excel in 2022? And what are the real estate investment trends to look out after this pandemic? We listed three trends you should know as the country recovers from this global war on viruses:
- Real estate investment in rental properties will likely remain strong.
Despite eviction moratoriums, multifamily properties performed relatively well during the pandemic. At the height of the pandemic, many tenants received rental aid assistance and direct aid to pay monthly rent—which kept these types of investments appealing to savvy investors—and rental units have remained in very high demand. Also, many landlords worked out payment plans with tenants to ensure that they continued to receive rent, and this also kept the rental market tight with few evictions.
- Commercial real estate will continue to recover.
There were mixed fortunes for owners of office and retail properties during the pandemic. Many offices were deserted as people were forced to work from home. There was talk that investment in office space would never recover.
However, the complete shift to working from home never happened—and it appears unlikely that it will. As such, office and retail properties are likely to be a good investment in a post-pandemic world, as the demand will likely be higher than once expected. Another good sign? Retail properties stabilized as stores were able to open and resume trading during the last quarter of 2021—and will likely continue that trend throughout 2022.
- Industrial real estate investments will remain strong.
During the pandemic, some of the best real estate investments in the commercial real estate sector were those connected with logistics and shipping. One of the main reasons for this was that e-commerce businesses were doing more business than ever thanks to an uptick in online shopping, and, in turn, needed a lot more storage and shipping space.
Many analysts say that the demand will remain high for commercial properties thanks to continued growth in e-commerce—which had been occurring well before the pandemic. The lack of in-store shopping options simply added more fuel to an already burning fire.
Other notable real estate investment trends in 2022.
While industry experts agree that the pandemic affected real estate investment strategies, real estate and property investment remain a target for many investors. We’re already seeing positive trends in the first few months of 2022, including:
A shift in investment strategies. Right now, many real estate assets require repurposing and redevelopment due to the changing landscape. This is requiring investors to have robust strategies that allow them to understand the core aspects of their investment targets. In most cases, this means they are gaining access to data-driven analysis and in-depth marketplace insights—which helps to heavily inform their strategies.
Demand for flexible spaces. The demand for office space is increasing as workers return to the office. However, commercial tenants now want flexible workspaces because hybrid models have become the norm. This requires repurposing existing office space to make it more accessible for hybrid work, which requires room for collaboration and meeting spaces. It may also require commercial property owners to redevelop office space with flexibility in mind.
Environmental, social, and governance (ESG) is a top priority. Sustainability and ESG are becoming priorities when commercial tenants are looking for new space. In addition, corporate clients must provide their socially-conscious investors with guarantees about operating sustainable businesses, which means there’s even more demand for these types of spaces. And, with many cities having ambitious net-zero emission targets, the demand for energy efficiency, cool roofs, and reducing wastewater continues to increase as well.
Technology informs the way buildings operate. The COVID-19 pandemic forced many investors, property owners, and tenants to rethink how they use technology. For example, many residential landlords switched to online rent payment and collection methods. They arranged virtual tours for potential tenants and started using e-signatures on electronic documents. In turn, landlords found that these new technologies helped to streamline their rental businesses.
As a global community, we’re still working to understand this new normal. We do know, however, that investors must think beyond how a property has traditionally been used, and envision how space might be repurposed in the future. If you need to know more info on real estate investment trends to look out after this pandemic, CPD Homes, LLC is here to help. We are a part of a national network of real estate investors and see no situation as unsolvable. We’ve worked with sellers dealing with inherited properties, divorce, mortgage problems, major repairs and more! No matter your situation, we can help.
Call us now at 216-619-4387, or visit www.cpdhomes.com.
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