Chief Economist of the National Association of Realtors, Lawrence Yun, believes commercial real estate will excel despite rising interest rates.
Industrial, retail, hotels and hospitality are doing well. He believes the residential housing shortage will boost apartment rents by as much as 10% over the next 2 years. Industrial space prices will rise. This is a very bullish considering the current market conditions.
The office market is more uncertain. Some markets outside of major US cities (think co-working space in the suburbs) is seeing an increase in demand. Yun also believes future economic growth, and new hiring, will have a balancing effect on the remote work trend – bringing more people together in offices.
Today Kastle Systems Back to Work Barometer is up to 44%. Predicting this will go higher is not telling us much. Where will it end? We think around 60% to 70% by the end of the year. What do you think?