1 Compelling Real Estate Trend to Watch in 2022

Real estate is an exciting and fast-paced area to invest in and this rings truer than ever as the new year begins. In this section of the Backstage Pass recorded December 22ndFools writer Deidre Woollard shares the top trend she’s seeing in the real estate market for 2022 with her colleague Rachel Warren.

Deidre Woollard: For me the biggest question is office real estate and what is happening now. I think it’s just an intriguing trend because it was such a wild card. It was so hard to call. We’ve seen a rebound in retail, we’ve seen a rebound in hospitality,

Airbnb (NASDAQ:ABNB) has had a really great year. But then you have this placeholder for office, and it’s become even more of a placeholder with what’s happening now with the pandemic and more potential shutdowns. Still, there are companies that have invested heavily in physical premises.

Google (NASDAQ:GOG) (NASDAQ:GOOGL) made some big purchases this year, Amazon (NASDAQ:AMZN) such as, Facebook (NASDAQ:FB). They have a trophy trait, SL green (NYSE:SLG), which is a REIT we follow, another Vanderbilt property in New York. Large beautiful tower, has achieved some record rental numbers which is really surprising in this climate. Yes. Right. Really interesting.

Rachel Warren: I would not have expected this. [LAUGHTER]

Wool: It’s funny, the office isn’t over, but it’s changing. I think one of the possibilities investors can keep in mind is that the office isn’t where you go every day.

The office is where you might come into contact with the brand, similar to retail but if you are actually an employee. It’s the place where I think they’ll be more likely to visit the office than inhibit the office.

This is interesting because it really is connected to everything. It obviously connects to things like zoom (NASDAQ:ZM), but it connects to things like Apple (NASDAQ:AAPL). There’s really that tracking when you think about things like cybersecurity.

One of the areas I like to follow is data center REITs and the amount of data we consume that just keeps going, I think of stocks like Digital Realty Trust (NYSE:DLR). I think the implications of this are really fascinating for investors in so many different areas.

This article represents the opinion of the author, who may disagree with the “official” endorsement position of a Motley Fool premium advisory service. We are colourful! Challenging an investing thesis — including one of our own — helps us all think critically about investing and make decisions that help us be smarter, happier, and wealthier.