Real estate predictions for 2022: How wrong was my crystal ball?

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Real estate predictions for 2022: How wrong was my crystal ball?
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With inflation at a 40-year high, a Russian invasion of Ukraine, wild stock market gyrations, political unrest and folks back to work, we are witnessing life-altering changes in our world.

My 2022 prediction on industrial rents went like this: They’ll increase. Next bullet point.

In Orange County, there are eight new developments proposed or under construction for a combined 2.7 million square feet. That’s a staggering number until you factor in what’s available today. That would be one. That’s correct! One available building.I’m shocked to see industrial rents surpass $2 per square foot, triple net. Just to put this in context, industrial rents in 2010 were approximately 25% of this. Yes! That’s correct a quarter of what they are today.

My team works remotely as do others. Adjusting to this change means smaller footprints and more multi-use spaces.There is some talk among the big players that a return to the office is imminent. Mentioned frequently is the difficulty in maintaining a culture with a remote workforce. We haven’t experienced this so much in Orange County. I believe we are headed for a hybrid workplace that flexes between remote and in-person office occupancy.

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