Top Articles of 2022

Explore the latest trends and popular insights within CRE to make informed investment decisions. We deliver cutting-edge market research reports and cover a multitude of property types and conditions across the U.S. to provide investors with important updates. Browse the top 10 articles of Q3 2022 below for specific market research and analysis.

The Current State of Car Washes

In recent years, car washes have become a popular asset among net lease investors and increasingly attractive for those seeking secure long-term, passive investments. With increased consolidation and rapid development in the car wash space, supply has increased significantly, and investors have become more comfortable with the product type. Subscription-based memberships have played a big role in this transition, by allowing operators to generate recurring revenue and loyal customers by offering unlimited monthly washes to the customer. A Grand View Research report found that the global car wash services market was valued at $29.3 billion in 2021 and is expected to reach $38.6 billion by 2030, at a CAGR of 3.1 percent during the forecast period.

Direct to Consumer VS. Wholesale

Over the past few decades, the surge in e-commerce has shifted many consumer brands from relying on wholesale retailers to direct-to-consumer (DTC) operations. Although some global brands have seen great success with DTC, recent research has shown that the business model may not be the “end-all, be-all” to business success. Operating costs of a DTC business are much higher compared to wholesale retail and are only going up as inflation rises. Traditional retail is also making a comeback throughout the nation. The NPD Group reported in-store sales claimed 64 percent of total retail sales in September 2021, as consumers crave in-person experiences in a post-COVID-19 world. This shift has helped retailers rebound and revitalize their sales. Both operations have noteworthy financial and marketing arguments, so how does a brand decide which is best?

Industrial Service Facilities: The Next Wave in Industrial Real Estate

Due to various external factors that exist in the marketplace today, the U.S. industrial segment has grown to be one of the most sought-after product types among investors. The excess demand has caused interest to spill from traditional warehouse investments into niche industrial assets. One of which is industrial service facilities (ISFs), mission-critical properties used to store, maintain, or dispatch vehicles, equipment, and materials. To some investors, ISFs might not be as appealing as concrete construction Class A warehouses; however, these facilities provide must-have services for supply chains that support multiple industries.

Future Economy Report

From the start of 2022, the U.S. economy has been plagued by the ongoing effects of COVID-19, war abroad, and supply chain disruptions. Now as the Federal Reserve tightens interest rates in an effort to cease rapid inflation, talks of a recession run rampant. So what does this mean for business investors? In this report, Matthews will analyze the future of the economy and its effect on commercial real estate.

Investment Opportunities in the Southeast

The Southeast has transformed into a hot spot for population and business growth over the past few years, positioning its real estate to be one of the best-performing sectors in the country. But the transitionary growth has reached beyond well-known metros and into secondary cities across the region, helping multifamily, retail, and industrial real estate to accomplish record-level investment activity. In this article, Matthews™ will evaluate the up-and-coming tertiary markets in the Southeast and their investment opportunities.

The Race to Invest in Collision Centers

Collison centers are growing in rank among net lease investments. The automobile service and repair industry proved to be one of the most resilient and productive asset classes in commercial real estate throughout the pandemic. This realization encouraged multiple-shop operators (MSOs) to start expanding their portfolio, acquiring mom-and-pop auto shops across the nation. Oftentimes, small shop owners do not realize the value in their real estate, or take full advantage of the market, losing out on profit. Real estate brokers have noticed and are now helping owners and operators maximize the value of their property, by understanding the underlying potential of the real estate and the demand for collision centers.

Is Multifamily a Good Inflation Hedge?

The rate of inflation has swelled in 2022 to 9.1 percent. In response, the Federal Reserve has hiked interest rates between 1.50 to 1.75 percent with the goal to reach 3.5 percent by the end of the year. The Fed is attempting to stabilize inflation to two percent annually by balancing employment and the federal funds rate. While rising inflation can signal an expanding economy, many speculate how it will impact property values and the opportunities for commercial real estate investors. Multifamily stands out for its stability and performance during all economic cycles, thanks to the constant demand for housing.

2022 Net Lease Tenant Report

While inflation continues to rise, net lease retail is outperforming in 2022, with bolstering rent increases, compressing cap rates, and incredible leasing volumes. In the last 12 months, retail sales have reached $60.1 billion. Investors value the strong nature of net lease retail and are planting their capital in safe, passive investments to ride out the quickly accelerating rates environment.  In this report, Matthews™ looks at data from 40+ tenants, including current on-market data for typical lease structures, key statistics, and transactions, providing you with insight into opportunities in the market.

Market Rent Vs Subsidized Rent

Dating back to the Great Depression, Federal housing assistance programs have helped cost-burdened families pay rent. By the 1960s and 1970s, the federal government created subsidy programs to increase affordable housing production. Since 1974 the U.S. Department of Housing and Urban Development (HUD) has assisted low-income households to obtain better rental housing and reduce the share of their income that goes toward rent through a program that relies on the private rental market. According to HUD.gov, the Section 8 voucher and certificate program helps over 1.4 million households in the U.S. by paying landlords the difference between what the household can afford and the rent for the unit.

Atlanta Multifamily Market Report

The Atlanta metro ranks as one of the top markets in the nation, as values are rising at double the national average pace causing investors to pour capital into the multifamily sector. Its strong demographic trends, paired with the year-over-year rent growth at 11.9 percent, make Atlanta a commercial real estate hot spot. Owners have capitalized on the surge of demand since the pandemic and the tighter-than-usual housing market across the region. As seen in recent months, rent hikes are starting to moderate, due to net absorption in late 2021 and early 2022.