There’s reason to feel optimistic about the commercial real estate market in 2022, and it’s not just because we’re looking at the marketplace with rose-colored glasses – we promise! 

Despite continued uncertainty with public health, the changing workforce dynamics, and a sluggish year for commercial in 2021, all signs point to steady recovery and several booming sectors in 2022. So let’s dig into what we’re hearing from our industry leaders.

Supply & Demand

With many businesses in the service sector reopening and reorganizing to welcome back in-person customer service, the e-commerce boom of 2021 will likely slow, which according to the 2022 Forecast Report from CBRE, will give supply a chance to catch up with demand.

In the Central Oregon market, we’re seeing returned confidence and intent from businesses offering services as well. Demand for accessible space is up, and many companies who waited to open, relocate or expand during 2021 are now ready to proceed.

Return to the Office

While it’s likely that a remote hybrid office environment will remain moving forward, many companies and employees are ready to get back into the office, at least part-time. With increased access to rapid testing for Coronavirus, an upsurge in demand for group collaboration, and access to space away from home, companies are dusting off their desks conference rooms and looking forward to creating a new hybrid work environment for employees and customers. Forbes predicts that the drive for office space will continue to rise, but how that space is utilized will change to embrace flexibility and hybrid options.

Mixed-Use Development

In the Bend, Oregon market, we expect to see continued growth and expansion of new mixed-used developments and redevelopment of existing spaces to accommodate the rapid growth of the community, housing needs, and business expansion in our market. Cascade Business News, noted in a recent article featuring the Hooker Creek development near Old Mill District, “The proposed development will align with the goals and objectives laid out in the Core Area Plan adopted by the City of Bend in 2020 to address four of the city’s nine opportunity areas — areas suitable for new growth as identified in the Comprehensive Plan. The long-term plan is focused on creating a connected community and integrating emerging mixed-use districts with more established areas of the city.”

Multifamily Comeback

According to JP Morgan and Chase’s recent article on the 2022 Commercial Real Estate Market Forecast, multifamily numbers have emerged stronger than ever in the new year. With a fourth-quarter vacancy rate at 4.7% at the end of 2021, lower than it was at the end of 2019, there’s reason to believe the comeback will continue throughout this year.

The commercial real estate forecast for 2022 is filled with opportunities, optimism, and a focus on investment in the future. Stay tuned as our team at Northwest Key monitors and reports on the industry throughout the year.

Are you looking for office space or a location for your growing business? Our brokers are ready to help! 

Contact a Northwest Key broker, and let’s schedule a time to discuss your needs.