While there’s been a lot of uncertainty in recent months about the state of the real estate market, commercial real estate has grown.
This time last year, we started seeing encouraging headlines about a commercial real estate recovery but knew it would be uneven. Nationally, demand for office space was lower, along with malls. In West Michigan, the industrial market was going strong.
The good news on the commercial front is more clear this year. We recently came across this article stating that “there appears to be no indication that things are slowing down” when it comes to commercial real estate, with the exception of office space.
The pandemic has reshaped commercial needs, giving a big boost to warehouses, apartment complexes, and medical offices.
Medical office space has increased due to the need for more doctors during a pandemic. The areas that have seen the largest increase in medical offices have been cities. Warehouses have increased in sales as well in part because of online shopping and technology sectors.
On the other hand, office space has seen a decline as some companies are staying remote post-pandemic. Though they are trending back up slowly, they may never return to pre-pandemic numbers.
This is true in Ann Arbor as well, where office and flex space vacancies have doubled since 2019.
However, it’s believed that both in Ann Arbor and nationally, the sales of commercial office space will begin to return to a new normal, and these other sectors will continue to boom.
If you or your customers are involved in the market, remember that Transnation Title is always here to help with commercial transactions and more. To learn more about our commercial services, click here.