March 2022 Commercial Market Insights

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Cover of the March 2022 Commercial Market Insights report

The commercial real estate market continued to see rising occupancy, rents, and investor acquisitions in February 2022, with the impact of the Russia-Ukraine war and upswing in interest rates still likely to manifest in the coming months in some commercial segments.

In the apartment market, 571,669 units were absorbed in the past 12 months through March 26, outpacing the 404,152 units delivered into the market (supply). The vacancy rate remains at a low 5%, pushing asking rents up 11% year-over-year on average.

With more workers heading back to the office and amid sustained job growth, 22.1 million square feet (MSF) of office space absorbed since 2021 Q3. However, occupancy is still down by 115 MSF compared to the pre-pandemic level, pushing up the vacancy rate to 12.3%. Asking rents are up on average by 0.7% year-over-year, with rents up in nearly all 390 metro areas except in markets like New York, San Francisco, and Washington DC.