The Azucena Take: Opportunities in Investment Real Estate

There is a confluence of events that have disrupted the status quo and are set to change the overall commercial real estate market. Demographics are changing while the pandemic only accelerated trends that were already happening.

At the same time, interest rates are at an all time low while cash savings have skyrocketed. All these factors combined have set the groundwork for an economic boom.

As of March 2021:

• Core retail sales are up by 15%.

• The average occupancy rate for self-storage units is at 98%.

• Hotel occupancy rates hit 54% (the highest since February 2020).

• Apartment vacancy rates are at 4.5%, despite a record number of new complexes built.

• Industrial property has continued to see a modest rise in vacancy.

• Student housing and nursing homes are expected to have a rebound sometime in the Fall.

Retail property remains unique among investors as several factors play in its value. Single tenant properties in a desirable location or selling essential goods are thriving. Meanwhile, outdated shopping malls located in less dense locations will continue to lose value as time passes.

As these number continue to rise, investors could start benefiting from a post-pandemic economy. Thankfully, there is still time to invest but that window of opportunity is starting to close with each passing day.