The year 2021 brought about numerous changes in our lives, whether it was health concerns, economic impacts, or simple ways of life. One thing that also saw a drastic change was commercial property sales, as this industry saw record highs in 2021. At Sovereign Realty Advisors, we saw firsthand the impact that the Covid-19 pandemic had on real estate, as it was a great time to get into commercial real estate in Essex county! Keep reading to learn more about these record highs and how they continue to impact the industry.
Record Sales
Commercial property sales totaled around $809 billion in 2021, which nearly doubled the amount in 2020 while immensely surpassing 2019’s $600 billion in sales, according to Real Capital Analytics. Since the peak of the Covid-19 pandemic hit in 2020, it was great to see just a drastic recovery the following year!
Why the Change?
Investors set a record high in sales due to the mindset that the pandemic would change the way society lives. A huge focus was on purchasing warehouses, which helped to serve as fulfillment centers for the boom in e-commerce. Due to the many closures that occurred, consumer buying habits shifted towards an online approach, leading to drastic sales in warehouses.
Other Property Changes
Although warehouses were one of the most impacted property types, other real estate benefited in 2021. Apartment buildings saw a significant increase in sales due to the rising rents amid an inventory shortage. Resorts and hotels targeted towards tourists also did well, as the population slowly began to return to their standard way of living.
On the other hand, office buildings have seen little impact as many Americans have continued working from home lifestyles.
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With the record highs we saw in 2021, we cannot wait to see what this upcoming year has in store for us. If you want to get into the real estate industry, make sure to contact us today to get started!