New commercial real estate construction is limited as inflation continues to put barriers on building material acquisition yet simultaneously drives the value of existing properties. According to Trading Economics, the current inflation rate sits at 8.5 percent as of March 2022. Experts predict that the record growth in industrial and multifamily in 2021 cannot be sustained into 2022. Pricing surges occurred across all asset types, according to RCA data, due to the scarcity of new properties. All retail assets, including shopping centers and freestanding retail, climbed 16.3 percent year-over-year in pricing, while apartment assets increased 22.4 percent, industrial pricing hiked 30.1 percent, and office pricing grew 10.3 percent. Property growth will likely be stagnant across CRE sectors as supply shortages prevent developers from breaking ground.
28 Apr 2022
Is Supply Still Constrained?
Category: Apartments, Healthcare, Industrial, Multifamily, Net Lease Retail, Office, Shopping Centers
Tags: construction, Development, Supply Constraint
Recent Articles
Recent Media & Thought Leadership

3/28/2023
The Matthews Podcast - #11 - The Adjustments in Capital Commitments: Real Estate Investing Trends Today vs. A Year Ago
The Matthews™ Podcast | Episode #11 The Adjustments in Capital...

3/24/2023
How Urgent Care Centers Are Revolutionizing Retail
Demand For Urgent Care Centers Urgent care centers are bringing...

3/24/2023
Increased Consumer Spend Amidst Volatile Economic Times
Consumer Spending Consumer spending contributes to the creation of jobs,...

3/23/2023
The Mega-Merge: Kroger and Albertsons
The Mega-Merge of Grocery-Anchored Tenants What We Know About the...

3/23/2023
Phoenix Hits 40-Year Low Retail Vacancy
Retail Vacancy in Phoenix The thriving retail sector in Phoenix...

3/23/2023
Multifamily Housing Updates
Major Multifamily Housing Updates After two years of historical performance,...

3/23/2023
Retail Market Report | Houston, TX
Houston, TX Retail Market Report Market Overview The retail...

3/20/2023
How to Elevate Your Property With Placemaking
What is Placemaking? The concept of placemaking has been around...

3/16/2023
Self-Storage Market Report | Southeastern Markets | February 2023
February 2023 Self-Storage Market Report Southeastern Markets Over the past...