Commercial Real Estate in 2022

By: TXRB Staff | 20 Jun 2022

Commercial Real Estate

Real estate in general seemed to skyrocket amid the pandemic. Once we were through the
initial shock of the pandemic, residential real estate took off like crazy with home values higher
than we’ve seen them in decades.

Commercial real estate, on the other hand, suffered at the hand of the pandemic. As more
people stayed home and even worked from home, commercial real estate was at a standstill
but 2022 has shown improvement already and the forecast is that it will continue.

Trends in Real Estate

Each area of real estate has had different trends throughout the pandemic and each is
recovering at its own pace.

Multi-Family Homes

During the pandemic multi-family vacancies were high but they have since dropped to 3.3 –
3.5%. With single-family home prices skyrocketing, investors are able to buy multi-family homes
and rent them out to families who can’t afford to buy homes in this current economy.

Retail

Demand for retail stores have slowly started increasing again. While during the pandemic,
many stores and restaurants closed because no one was leaving their homes and most people
were doing their shopping online, more people want to get out now.

Stores and restaurants are filling up again and more business owners are expanding or are just
now getting the funding to open the establishment that may have been in the works for many
years before COVID hit.

Office Space is Still in Need

During the height of the pandemic, almost everyone worked from home unless they worked in
a critical industry that required in-person service. Today, though, more people are heading back
into the office.

Even those people that want to work from home are working in a hybrid situation with half of
their time spent at home and the other half in the office. Even those that do work from home
are looking for co-working spaces to put some space between their home and work life.

Fancier Rental Units

Rental units are still in high demand and this is expected to continue throughout 2022. With
inflation and interest rates on the rise, many low to middle-income families can’t afford to
purchase a home or even if they can, many are choosing not to just to avoid the inflated real
estate costs.

Rental units are seeing an uptick and many investors are looking to upgrade the facilities they
have so they can charge higher rent rates and make more money.

Final Thoughts – Commercial Real Estate is on the Rise

Real estate is on the upswing in 2022 and beyond. With life getting somewhat back to normal,
there is a higher demand for commercial real estate, but Texas Republic Bank has your back.
We offer a large variety of commercial real estate loans to help you secure the real estate you
need for your business, whether it’s a rental unit, office space, retail establishment, or even a
church.