Three Bold Real Estate Predictions for 2022

• As we prepare for 2022, below are 3 bold predictions for commercial rea estate

• Prediction #1: Recovery of the urban core will gain momentum

  • Should benefit nearly all types of real estate in downtown areas, particularly Office

  • Local COVID protocols, return to office plans, etc. will impact recovery timeline

• Prediction #2: The housing shortage will persist

  • Structural lack of housing options shows no signs of slowing

  • Home prices and rents will continue to rise, boosting Apartment performance

• Prediction #3: Inflation will not be transitory, and the Fed will take action more quickly

  • Prediction #1 and #2, will both place upward pressure on inflation

  • Fed has already signaled a more hawkish stance - If inflation pressure doesn’t wane, the Federal Reserve could accelerate plans including a faster taper and interest rate hike

  • CRE cap rate and interest rates do not move in lockstep – Strong investor demand for real estate assets will likely keep yields from rising substantively