Michael Korsh of Minnesota recently discussed commercial real estate market trends for 2022.
Real estate company owner Michael Korsh of Minnesota has predicted a prosperous year for the commercial real estate market in 2022. He recently discussed how the commercial real estate market bounced back in 2021, and the trends that are expected throughout 2022.
“We’re watching out for a variety of commercial real estate trends in 2022,” Korsh said. “I hope our research can benefit individuals interested in buying or selling commercial real estate this year.”
Michael Korsh of Minnesota explained that many people have been talking about mass exoduses from many cities amidst the COVID-19 pandemic. However, that hasn’t been the case on the coasts.
Vacancy levels in New York City have nearly returned to what they were before the pandemic took hold in early 2020.
Coastal towns and cities also never saw their residents leave in large numbers. These areas remain popular places to live and vacation, and that will keep commercial real estate thriving in these areas thriving in 2022.
Hybrid Work Is Now Embraced
Many office spaces were emptied in 2020 when lockdowns were put into place and many in-office jobs became work-from-home jobs.
Companies that quickly adjusted to 100-percent at-home work that year are realizing that hybrid work models may be more successful. Many companies, even tech giants that were entirely work-from-home, are leasing workspaces again.
Micheal Korsh of Minnesota explained that the future of office buildings is in limbo, but the trend is pushing toward major companies leasing offices in major cities. How much time employees will spend there in future years has yet to be determined.
A Push Toward Higher-End Rentals
The pandemic is forcing people to spend more time at home. This major life change is encouraging people to seek more comfortable and spacious apartments. Many need any additional bedroom to transform into a home office. The demand for higher-end and larger rental units is increasing, and that’s expected to continue throughout 2022.
Commercial real estate owners in the apartment, condo, and townhome rental sectors need to consider creating more luxurious accommodations for their renters.
New Opportunities Abound
The year 2022 is looking like a year of opportunity for real estate investors. Korsh explained that several opportunities are proving more profitable than others.
“We’re going to need more affordable housing and workforce housing for the working class,” Korsh said. “This presents a major opportunity for commercial real estate investors in this sector.”
Similarly, Korsh stated that 2022 looks like a profitable year for those investing in infrastructure. People who have moved out of major cities need quicker commutes. That means this could be an ideal time to invest in infrastructure, which directly benefits commercial properties in the connected areas.
About Michael Korsh of Minnesota
Micheal Korsh is a real estate expert and the owner of JFA Real Estate. He has specific expertise in commercial real estate and commercial real estate trends.