0422_ACRE:BOMA Digital Edition - Page 18

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Greg Aguirre
CEO , Capital Rivers Commercial Member , ACRE
What do you see coming up in the market for the rest of 2022 and beyond ?
There appeared to be a slight uptick in office leasing activity late in 2021 , which signals that some businesses have confidence they will be bringing workers back to physical office space in 2022 . As an example , according to Costar Analytics , ( when ) JOINN Biologics ( was ) expanding from their Richmond location , ( they ) purchased a 20,000-square-foot office building in North Natomas . There have also been several other Bay Area-based companies that have been looking to open satellite offices to service their remote workers that have relocated to the region . There has also been an increase in demand for new medical office buildings ( MOBs ), which has proven to be resilient throughout the pandemic , particularly those which support the aging U . S . population . In fact , at Capital Rivers Commercial , we are currently working with a couple of these types of MOB users on new ground-up projects here in the Greater Sacramento area . ... Companies have shown that they are looking for variability and flexibility in their office space needs to be better prepared for future disruptions and to better accommodate their workforce . What this means is that the lease terms will likely be shorter and provide for more flexibility for tenants , more leasing activity and growth in suburban areas closer to where the workforce lives , ( and ) a focus on office perks that will help with employee retention and culture .
Spencer Moyer
Managing Director , ALIVE Commercial Real Estate Member , ACRE
How have the last two years affected real estate investment ?
Institutional investment in multifamily has remained strong given the resiliency of the product type throughout the pandemic . Many employers offering remote work resulted in out-migration of high-density , core markets into suburban areas . Capital flowed into garden-style suburban assets . However , with employees returning to in-person work , urban areas will see a resurgence of private and institutional investment . … Accelerating home prices have made home ownership out of reach for many throughout the pandemic , resulting in strong rent growth and occupancy for multifamily . Rent collections have been overwhelmingly positive as well . The biggest challenge for owners has been the unfriendly legislation that has been introduced . … Independent of any significant increase to interest rates or accelerated global turmoil , I think transaction velocity will remain strong . Real estate will always be a hedge against inflation and people always need a place to live .
82 comstocksmag . com | April 2022