Commercial Real Estate

2022 Real Estate Emerging Trends Include Uncertainty, Flexibility

By KERRY SMITH, EDITOR, ST. LOUIS CONSTRUCTION NEWS AND REVIEW MAGAZINE

The findings of PwC (PricewaterhouseCoopers) and the Urban Land Institute’s annual survey, Emerging Trends in Real Estate 2022, were shared by Andy Warren, PwC director of research, during CREW-St. Louis’ annual forecast event on December 10.

Continued uncertainty and flexibility are trends dominating the commercial real estate market as brokers, investors, lenders and others look toward 2022. Some 1,200 professionals including private real estate property owners, investors, real estate advisors, servicing firms, asset managers, lenders and construction industry players from across the U.S. answered the survey in mid-2021.

“We made it through the pandemic, but there is a new age of uncertainty,” said Warren, one of several presenters at the CREW-St. Louis virtual event. “Covid impacted every geographic area of the country differently. Likewise, the recovery won’t occur the same everywhere. It looks like our real estate universe is going to get bigger, and that’s good news,” he added.

Among the thriving retail markets post-pandemic, according to survey findings, are dollar stores and home improvement stores. Office is amidst a major reset, the survey found, while certain property types and assets are obsolete as property managers strategize how to repurpose them.

42 percent of survey respondents strongly disagreed with the question, “Will business travel and large-group industry meetings return to pre-COVID-19 levels?” 29 percent agreed that large-group business travel will return to where it was pre-COVID.

“A total of 84 percent of respondents think that the real estate industry will be stronger in 2022 than it has been in 2021,” Warren said. “Although rising operating costs and difficulty obtaining materials are having an impact on inflation and on companies’ bottom lines, it’s not enough to offset the collective optimism for 2022. There is still strong demand in numerous real estate sectors.”

To download the full forecast report and survey findings, see

https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2022.pdf

https://www.pwc.com/us/en/asset-management/real-estate/assets/pwc-emerging-trends-in-real-estate-2022.pdf

Commercial Real Estate Developer Saves Time, Money Leveraging “The UP-Side Advantage” on Two St. Louis Luxury Apartment Projects

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Saving time and money on projects isn’t just a goal for The UP Companies (UPCO); it’s a reality for its customers. A commercial real estate developer and design-builder recently experienced “The UP-Side Advantage” when it contracted with both Power UP Electrical Contractors and Square UP Builders on two luxury apartment projects – Ceylon in Clayton, MO and Citizen Park in St. Louis City.

“By utilizing the combined services of Power UP and Square UP on each project, we were able to bring office and field efficiencies that saved the customer both time and money amidst a very busy construction market with a peaking demand for resources,” said Michael Kennedy, Jr., owner of UPCO. “This is what we call ‘The UP-Side Advantage.’ The developer was so pleased with our performance and the savings they experienced on the first project, Citizen Park, that they contracted with us for the second project, Ceylon.”

As part of The UP Companies family, Power UP and Square UP are able to offer its customers a litany of efficiencies when customers choose to contract with both entities:

  • Reduced overhead markups for administrative and management time.
  • Shared safety inspections and job hazard analysis costs.
  • Reduced layout costs.
  • Combined deliveries from a single warehouse.
  • Tool and equipment sharing.
  • Direct coordination between foremen and crews.
  • Reduced field logistics and material handling expenses.

Power UP was the design/build electrical contractor on both projects, which included power, lighting, data, fire alarm and audio/visual installation. Square UP provided finish carpentry services on Citizen Park and framing, finish carpentry and all building exteriors on Ceylon.

Citizen Park is a 218-unit luxury apartment building at Lindell Boulevard and Euclid Avenue in St. Louis City’s Central West End Neighborhood. The $68 million, 12-story development includes a four-story parking garage and commercial space on the ground floor. The development also features penthouses, upscale apartments and a third-floor deck with grills, fire pits, a pool and fitness center. Monthly rent for the apartments ranges $1,300-$5,000.

Ceylon is a six-story, 120-unit residential and retail development in the downtown business district of Clayton. Ceylon features two levels of underground parking and two amenity decks for residents who have access to a club and game room, commercial-grade kitchen for entertaining, conference room, outdoor grill and fire pit. The residence also features a state-of-the-art fitness room, 24-hour package lockers in the mail room, a Starbucks coffee bar and video-enabled building access technology.

Both projects were completed with UPCO meeting or exceeding the minimum requirements of 25% minorities and 5% women on each project.  Square UP averaged more than 20 carpenters on the sites at a time. Power Up employed nearly 30 electricians on the jobsites.

The UP Companies (UPCO) is one of the region’s largest full-service MBE-certified contracting companies.  For more information, go to www.theupcompanies.com or call 314.865.3888.