WMRE's Common Area: What to Expect from CRE in 2022 With CBC’s Dan Spiegel
In this week’s blog, we highlight some of the most impactful insights from Dan Spiegel’s conversation on WMRE’s Common Area podcast. In this episode, host David Bodamer is joined by Dan Spiegel, senior vice president and managing director with Coldwell Banker Commercial. Spiegel shares where real estate investors are currently putting their money and what’s new in site selection practices among retail and restaurant tenants. He also discusses the continuing importance of maintaining bricks-and-mortar retail locations even as the trend toward e-commerce continues to grow. The two industry experts take a deep dive into CBC’s 2022 commercial real estate outlook, which you can access here.
As we settle into 2022, there is still a lot of uncertainty when it comes to the U.S. economy, the direction of interest rates and the COVID-19 pandemic. However, for the commercial real estate industry, the projections for 2022 continue to look quite positive. For example, REITs and investment sales were up tremendously in 2021, which will continue in 2022. Overall, Spiegel is confident 2022 will consist of strong fundamentals fueled by stable cash flows and pent-up demand.
In addition, Spiegel shared these highlights:
- Major trends that emerged in the commercial real estate market in 2021
- Insights into how secondary and tertiary markets compare to primary markets for CRE investment. Demand for office buildings and office space in tertiary markets has continued to be strong despite the challenges of the COVID-19 pandemic.
- Projections for the major property types in 2022 and how momentum from 2021 will play out in the year ahead
- How retailers and restaurants have adapted to the pandemic environment and what it means for retail real estate
- Some of the trends that have been in the large markets are reaching smaller markets. That includes demand and new construction for large industrial distribution warehouse facilities, for example.
- Investors from California and other West Coast markets are seeking returns in secondary and tertiary markets because typically, investors see higher returns in smaller markets.
Spiegel offers a unique and fresh perspective on what is to come from commercial real estate this year given that Coldwell Banker Commercial is an important player in both large and small markets, yet specializes in secondary and tertiary markets. We encourage you to go check out the WMRE Common Area podcast with Bodamer and Spiegel. Let us know your favorite takeaways from the podcast episode!