2022 has been a solid year for commercial real estate. Retail, industrial, and multifamily asset classes have driven more than $800 billion in revenue. While the sector has cooled a bit this fall, 2023 looks brighter than ever. Here’s a look at three of the biggest trends that will likely shape the commercial real estate sector next year:
As 2022 winds down, economists still can’t come to a consensus about whether or not we’re in a recession. Still, it’s reasonable to expect that our nation’s financial turmoil will continue into next year. This doesn’t mean disaster for commercial property investors, though. The cost of single-family homes have risen by 43 percent over the last two years. As home buying interest drops and supply for houses remains low, multifamily rental properties will thrive.
America Returns to the Office
Amid the COVID-19 pandemic, more Americans began working remotely than ever before. Many organizations saw this as a temporary measure for health and safety. There’s been increasing pressure to bring employees back in the office, as some executives believe remote work undercuts productivity. Even if a company opts into the hybrid model, they’ll still need appealing workspaces to offer their employees. As a result, the demand for office space will continue to rise in 2023.
The Allure of Green Buildings
Earlier this summer, the Biden administration signed the Inflation Reduction Act (IRA) into law. This piece of legislation has serious implications for the real estate world. The IRA features incentives to stimulate envrionmentally friendly building projects to help curb our nation’s carbon dioxide emissions. Given the state of the economy, green building development is certain to become a big trend in 2023.
Invest Wisely in 2023
If you’re hoping to make smart investments into the commercial real estate sector next year, you’ll want the Insight Property Group by your side. Allow our team to start searching for the ideal property for your vision – whether you’re hoping to invest in retail space, multifamily property, or want to find the most appealing office space for your team as possible, we’re here to help. Our expert agents will help you navigate the real estate markets of Raleigh, Durham, Cary, and beyond. Contact us today to get started!