MULTIFAMILY LOOKS STRONG FOR FORESEEABLE FUTURE |
LOS ANGELES RIVER LOOKS FOR REBIRTH VIA DEVELOPMENT |
INDUSTRIAL TOPS WISH LIST FOR INVESTMENT |
DATA CENTERS BUY BIG IN CLEAN ENERGY |
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This page , left to right : Eyecrave , Pete Saloutos , Kefkenadasi , Thomas Barwick |
One of the strongest CRE sectors in the last two years , multifamily will see continued growth in 2022 . According to a Marcus & Millichap forecast , the U . S . will form 1.6 million new households this year , which is the same number of newly constructed residences expected to be delivered in 2022 . Multifamily could also see a boost in demand as the supply of single-family homes dries up and mortgage rates are set to rise .
While suburban locations saw an uptick in demand with the onset of the COVID-19 pandemic , urban areas could benefit from a suburban vacancy rate that is expected to remain below 4 percent . The resumption of entertainment and nightlife activities in central business districts could be another pull for potential renters to return to city areas . Additionally , considering changing working conditions , potential renters will be looking for spaces with offices and petfriendly landlords .
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Running within a mile of more than one million people , the Los Angeles River includes 2,300 acres of public land . The iconic concrete-covered riverbank has long been a point of discussion for CRE investment , but the LA River Master Plan hopes to incorporate parks , affordable housing , community space , and emergency disaster preparedness into the waterway ’ s future .
Los Angeles County Public Works is currently working on an updated Los Angeles River Master Plan that could meet community needs , while identifying potential funding sources . Proponents of development are aiming for funding from city , county , state , and federal sources as well as private dollars .
“ If anti-displacement policies are left to follow the adoption of the plan , real estate speculation will outpace any community stabilization efforts ,” says Friends of the L . A . River President and CEO Marissa Christiansen , in a statement to Bisnow .
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Optimism in commercial real estate investment is widespread , with 87 percent of investors feeling positive about the general outlook , according to a Colliers report . The industrial sector , unsurprisingly , continues to be the most popular target , with 67 percent of survey respondents likely to invest in the sector in 2022 , followed by multifamily ( 53 percent ) and office ( 45 percent ).
Overall , 62 percent of respondents expect value gains in industrial in 2022 , including 13 percent of respondents expecting more than a 20 percent increase in capital values . Interest focused primarily on light industrial / flex space ( 83 percent of respondents interested in it ), followed by bigbox / warehouse ( 81 percent ) and last-mile ( 48 percent ). Cold / dark storage ( 35 percent ) and container terminals ( 21 percent ) are two specialty assets that could see an uptick in investment , considering the overall competitive environment of the industrial sector .
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The cloud doesn ’ t power itself , and much of the energy used to operate data centers and other IT infrastructure came from renewable sources , according to research firm BloombergNEF . Amazon ( 4,824 megawatts in solar and 1,388 MW in wind ), Microsoft ( 3,477 MW solar ; 2,678 MW wind ), and Meta ( 1,980 MW solar ; 222 MW wind ) led the way of the top corporate buyers of clean energy . Amazon had a total of 44 power purchase agreements in nine countries , making its consumption of clean energy the 12th largest in the world .
“ The clean energy portfolios of big tech companies now rival those of the world ’ s biggest utilities ,” says Helen Dewhurst , senior associate at BNEF . “ Big tech faces mounting pressure from investors to decarbonize , and this is reflected in the steep increase in clean energy volumes purchased . The power purchase agreements inked in previous years pale in comparison to the portfolios announced in 2021 .”
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