The commercial real estate sector has seen strong performance in specific areas, notably in the retail, multifamily, and industrial sectors. Each of these sectors has exhibited unique trends and resilience in the face of broader market challenges:

‍

1. Retail Sector

Resilience and Recovery: Despite initial setbacks during the pandemic, the retail sector has shown signs of recovery. This resilience can be attributed to the adaptation of businesses to new consumer behaviours, like increased online shopping and a preference for local, accessible retail options.

Rental Growth: Retail properties have experienced robust rent growth, driven by the evolving consumer landscape and the gradual return of in-person shopping.

Sector Diversification: The sector has seen a diversification with a rise in demand for certain types of retail spaces, such as those catering to essential services, home improvement, and grocery stores.

‍

2. Multifamily Sector

Steady Demand: The multifamily sector, comprising apartment buildings and other residential rentals, has maintained steady demand. Factors such as urbanisation, demographic shifts, and housing affordability issues contribute to the sustained interest in rental housing.

High Rental Growth: This sector has experienced high rental growth rates, especially in certain geographic regions experiencing population growth or housing shortages.

Investment Attractiveness: The multifamily sector continues to be attractive to investors due to its perceived stability and the consistent demand for housing.

‍

3. Industrial Sector

Robust Growth: The industrial sector, particularly logistics and warehousing, has seen robust growth, largely fueled by the e-commerce boom and the need for efficient supply chain solutions.

Rental Rate Increases: Industrial properties have witnessed significant rental rate increases, driven by high demand and relatively limited supply, especially in strategic locations.

Value Growth: Industrial real estate properties have been on a sustained run of value growth, with improvements in market fundamentals such as declining vacancy rates and new developments.

‍