Commercial Real Estate Trends to Watch

Commercial Real Estate Trends to Watch

Commercial Real Estate Trends to Watch

Commercial real estate industries are expected to continue improving in the coming year as the economy recovers from the Covid-19 outbreak. The future holds both risk and reward potential. Here are the top advancements to keep an eye on, listed according to Dr. Jordan Sudberg.

Skilled nursing care for the elderly

Senior homes and skilled nursing facilities will continue to rebound in 2022 due to increased vaccination rates among those 65 and older. There won’t be a complete recovery until 2023. The Baby Boomer demographic surge will fuel long-term demand.

Some nursing homes, especially senior housing and skilled nursing facilities were hit hard by Covid-19 infections as fewer people sought to move in, leading to lower occupancy rates. In the second period of 2021, occupancy began to grow again, but it is still several percent growths below what it was before the crisis.

Markets for Apartments and Houses

New development restrictions will keep rents and property prices high in the foreseeable future. It is becoming increasingly difficult for many families to keep up with rising rents and rising property prices because of rising affordability.

The rental and housing markets tend to move in opposing ways, with a robust housing market accompanied by weaker rental housing and vice versa. During the epidemic, however, the demand for greater living space has lifted rental and homeownership markets to historic profits while individuals work and study from home.


According to our forecast, strong property and residential markets will fuel another year of growth for self-storage.

Self-storage As strong real estate markets and real estate purchases have fueled demand for storage, REITs have performed exceptionally well during the pandemic. As of 2021:Q3, funds from operations (FFO), the much more prevalent metric for REIT earnings, were 42 percent higher than before the pandemic, while the stock market had gained 57 percent year to date as of late November. If the number of people who work from home drops, there is a risk that extra spaces in homes and flats will no longer be needed.

Conventions and Business Trips

According to Dr. Jordan Sudberg, hotel and entertainment establishments that cater to business tourists will enjoy a faster return to growth in 2022.

Because so many meetings and conferences are still held virtually, business travel has trailed behind the resurgence in leisure travel. However, business travel and conferences are becoming increasingly common, and face-to-face meetings can be more effective when negotiating a significant contract or selling a brand extension.

A Place on the Internet

Digital real estate sectors, including data centers, towers, and industrial REITs, will continue their rapid expansion in 2022.

Communication channels provided a lifeline during the pandemic, from business online conference meetings to consumer e-commerce purchases and online movie streaming. Even as the economy begins to recover, demand for digital real estate sectors such as data centers, infrastructure/cell towers, and industrial/logistics facilities continues to grow.

Return to Work

For many workers, flexible work-from-home arrangements will make it possible to skip the daily commute for a few days each week.

Even though the monthly employment report from the Labor Department shows that millions of workers are returning to work each month, many companies are moving toward a flexible work model.

Rather than how many employees commute each month, keep an eye on this key development. As a result, you should pay attention to the peak demand for commercial space on days when everyone is in the workplace for team communication. On days when employees work from home, keep an eye out to see if employers reorganize the coworking space to minimize individual workstations or if there is less density in the office.

Current Trends in the Business World

Current Trends in the Business World

Current Business Trends You Should Know Right Now

The business world is constantly changing. New technologies, trends, and approaches to old problems come and go every day. And while many of these changes are highly obscure, others are so omnipresent that they’re difficult to avoid. It can be easy to overlook the effects of current events on your future career. If you’re anything like us, you may spend more time reading about the future than planning for it. The good news is that, while the future is often very unclear, there are plenty of clues about what kinds of jobs are likely to be in demand in the years ahead. Here is a brief overview of the most current business trends that you should know right now, according to Jonathan Osler.

1. Business Model Innovation

The business world is changing so quickly that a company’s “business model” can change within years. The nature of work is changing, as is our relationship with technology. As a result, we see many new kinds of companies emerge, and they are changing the way we do business.

2. Automation and Artificial Intelligence

Robotic and automated workers have been a part of the workforce for several decades. But in recent years, the pace of change has accelerated. Osler, an educator, predicts that, within the next decade, “we will see an era when more and more jobs are automated or highly outsourced to low-wage countries.” Automated technology has already begun to replace human workers in many fields. For example, algorithms now play chess better than humans do. And self-driving cars are already on the road. More advanced robots will be able to perform even more difficult tasks in the manufacturing and service industries.

3. Going from Global to Local

The global economy is changing to make it increasingly difficult for businesses to operate without a local presence. A recent study suggests that it’s more important than ever to know your customers in their native environment. “Whether you’re a small business or a large enterprise, you must be able to adapt to the needs of your customers and the local culture,” says Osler.

4. Social Engagement

“Social engagement is the hottest trend in customer experience. It’s a way of improving the customer experience by engaging the world around you and making your interactions with customers more human.” – Jonathan Osler. Today’s businesses are increasingly competing for customers’ attention on social networks like Facebook, Twitter, and LinkedIn. Customers are looking for companies that are quick to respond to their questions, offer useful products and services, and make them feel good about themselves. That’s why businesses invest in social media training programs to ensure that their employees effectively use these channels. One of the most popular applications for social media is customer service. Social media allows customers to interact directly with companies rather than email alone. The more interaction a company has with its customers, the more likely it will succeed.

The nature of work has changed. The macro trends and the micro-trends in this article have created a new environment for business, and it is important to understand the changing landscape when planning your strategy.