According to a report released in December by the National Association of Realtors, 2021 was a banner year for commercial real estate with investment acquisitions exceeding both pre-pandemic levels and the peak sales volume of 2006. Among the sectors performing exceedingly well have been retail and food services, especially free standing/single-tenant stores and units conveniently located in neighborhood shopping strip centers. Looking ahead into 2022, we expect demand for commercial property with strong fundamentals to continue along with declining cap rates, indicating lower investment risks and potentially stronger valuations, higher rents and improved returns for property owners.
Despite this optimistic outlook, investors must be forewarned that commercial real estate as an investable asset is entirely different from any other investment class, including residential property. Working with experienced commercial property advisors with deep tenant relationships and local market knowledge can help investors conduct thorough due diligence to minimize risk and help support investment goals.
With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email firstname.lastname@example.org.