Ask anyone and you are sure to hear the housing market has been on a consistent upward swing over the past few years.
Yet, when we talk about real estate, people often focus solely on homes and the “For Sale” signs we see in our neighborhoods. Real estate is where we live, right? Of course it is, but it is so much more than that.
Commercial real estate is all around us – where you work, shop, dine and grab your morning coffee. From the industrial park to main street, commercial real estate is everywhere that isn’t your home.
In March 2020, many businesses closed temporarily and unfortunately, many of those closures became permanent. This pattern led to an uncertain time for the commercial real estate market. However, there are hopeful signs that the national picture for commercial real estate is starting to adapt to these new circumstances.
The National Association of Realtors (NAR) reported that so far into 2022, all commercial sectors – multifamily, office, industrial and retail – have been on a recovery path since the second half of 2021.
NAR’s quarterly commercial market survey tracked how the pandemic affected working from home, the demand for office space, and how the space is used.
Gay Cororaton, NAR’s senior economist and director of housing & commercial research, says the organization’s fourth quarter 2021 survey reveals:
65% reported more businesses adopting a hybrid work schedule
63% reported more businesses in their local markets leasing smaller spaces compared to the pre-pandemic level
62% reported consolidation of office space in their local markets
57% reported more businesses with lease terms of two years or less
69% reported more businesses investing in facilities and redesigning workspaces to enhance sanitation, hygiene and physical distancing
This research supports the rising occupancy and rent growth commercial sectors have experienced in the last three months.
In addition, the Bureau of Labor Statistics’ December 2021 Current Population Supplemental Survey showed that only 19% of workers whose occupations are “management, profession or related occupations” or “office or administrative support” reported they had teleworked in the past four weeks. This trend is a hopeful sign that more and more businesses are returning to a more familiar version of “normal.”
While the continued increases in inflation and supply chain kinks are still at the forefront of conversations, it seems there is a welcoming bit of good news for commercial real estate. Regardless of their real estate discipline, Realtors remain the experts to consult with your real estate needs, whether personal or business. That’s Who We R®.
Founded in 1912, Greater Chattanooga REALTORS® is a regional organization with more than 2,500 members servicing Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade, and Walker counties in northwest Georgia. The Association is one of approximately 1,100 local associations/board of REALTORS® nationwide that comprise the National Association of REALTORS®. Greater Chattanooga REALTORS® owns and operates a Multiple Listing Service (MLS), which is one of approximately 600 MLSs in the country and services more than 2,700 MLS users.