People are finally heading back to the office and as such, the commercial property demand rates should start to become more positive. Many companies downsized during the pandemic, and with any luck, these corporations will now request people back into the office, and the need for bigger spaces will be prevalent.
Although it’s not set in stone, this will hopefully lead to more construction in the office sector – projects that have struggled will essentially find an increase in demand.
For other aspects of the property industry:
The retail market is expected to have a better year in 2022, after a slow 2020-2021 thanks to COVID-19 lockdowns. High vaccination rates, no lockdowns, and the reopening of international borders are expected to have a huge positive impact on shopping centres, student housing, and hotels. As such, these places are going to appeal to investors more.
Assets related to healthcare are also in high demand due to their connections to a growing part of the economy and more stable returns. These are great for building companies to take on board, and for investors to purchase.
Essentially, if a building has a good location, quality amenities, access to public transport, and is technologically advanced – you’re in a good position for construction, leasing and sales.
Industrial On Top
According to Herron Todd White’s most recent report, sales of industrial property have taken off in the first quarter of 2022. Research into the market found that cold storage, temperature-controlled facilities, and storage assets did very well during the pandemic due to problems with supply lines. Online shopping has grown to record highs, so e-commerce companies and suppliers are also doing really well in the current market.
Locally, the Herron Todd White report found the rise in industrial land values in south-east Queensland, which was caused by strong investment sentiment and a lack of land, made the commercial property market very strong.