Commercial Mortgages: More uncertainty looming this year in the real estate market after a record breaking 2021 | Business News

The local market has not been left out.

Sales volume in the Richmond area for retail and office property was at an all-time high in 2021, according to data from commercial real estate broker Cushman & Wakefield | Thalhimer. Retail property sales accounted for approximately $594 million, while office property sales reached a whopping $853 million

Other flood brands established themselves in the market. Rental growth in apartment buildings hit an all-time high of 14.7%, according to Apartment List (the Thalhimer report showed rental growth of 11.3%) and also showed that rents have risen by 18.9% since the pandemic began.

Not to be outdone, the industrial market had a record year for leasing with approximately 10 million square feet leased during the year – more than double the historical average.

According to brokerage firm Porter Realty Co. Inc., 9.9 million square feet of industrial space was under construction at the end of December 2021. The previous peak under construction was 3.5 million square feet.

Interestingly, the report points out that 60% of building space under construction is pre-released.

All activity in 2021 is good news for commercial real estate participants as well as the Richmond metro area, but is it sustainable with higher interest rates expected in 2022?