There are certain real estate trends investors need to pay attention to in order to stay ahead of the curve. Nelson Partners, a leading commercial real estate services firm, has released its list of the top trends for 2022.
1) The growth of e-commerce is changing how we use and occupy space.
The rise of e-commerce has led to the growth of fulfillment centers and distribution hubs. These facilities are typically located in rural areas, where land is more affordable, and there is less traffic congestion. As a result, we are beginning to see an exodus of businesses from urban areas to suburban and rural locations.
2) The demand for industrial space is increasing.
The growth of e-commerce has led to a surge in demand for industrial space. This space is needed to store and distribute goods. In addition, the growth of the sharing economy is fueling the demand for warehouse and distribution space.
3) The demand for office space is waning.
The growth of the sharing economy is causing businesses to rethink the way they occupy space. Instead of owning a physical office, more businesses are turning to sharing services such as WeWork and Regus. This type of workspace allows companies to pay only for the amount of space they need. In addition, companies can move their offices more frequently and easily adjust their size.
4) Millennials want shorter commutes.
According to Nelson Partners, millennials are now emphasizing shorter commutes than other generations. As a result, employers will need to create space closer to where their labor force lives and works. This could cause companies and organizations that traditionally occupy office buildings or corporate campuses to move into mixed-use areas with smaller footprints and more amenities.
5) The demand for multifamily housing is increasing.
The number of millennials who are entering into their prime home-buying years is causing the demand for multifamily housing to increase. This type of housing is becoming more popular because it is affordable and allows people to live close to one another. In addition, millennials are looking for unique amenities such as bike-sharing programs and social clubs.
6) The demand for senior housing is on the rise.
With baby boomers beginning to retire, many need more options for senior living arrangements. As a result, we’ll see an increase in demand for senior living and care facilities. In addition, we can expect to see changes in how these facilities are designed to better accommodate seniors’ needs.
7) The market for student housing is growing.
The number of students attending college is on the rise, and they are looking for more affordable housing options. This is causing the market for student housing to grow rapidly. In addition, developers are beginning to build new multifamily complexes specifically for students. These complexes often include common areas, study rooms, and fitness centers.
8) The market for data centers is growing.
The growth of the sharing economy and the rise of big data are causing the market for data centers to grow rapidly. Data centers are needed to store and process large amounts of data. As a result, we can expect to see more of these facilities popping up in suburban and rural areas.
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