We Study Billionaires - The Investor’s Podcast Network TIP423: Real Estate Update w/ Ian Formigle
Feb 18, 2022
Ian Formigle, Chief Investment Officer at CrowdStreet and commercial real estate guru, shares riveting insights on the market's evolution since 2021. He discusses impactful trends driving top-performing markets and the effects of labor and supply shortages. Ian highlights inflation’s role in shaping investment strategies and identifies lucrative niche asset classes. The conversation also touches on the major migration trends in the U.S., particularly the exodus from states like California, signaling shifts that could redefine real estate opportunities.
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2021 Market Overview
- 2021 was a historic year for commercial real estate, with $809 billion in sales volume, an 88% YoY increase.
- Multifamily dominated at 42% of activity, followed by industrial at 21%, both record-breaking.
Market Drivers
- Several factors drove strong real estate performance, including increased investment activity, supply chain issues, and inflationary environment anticipation.
- These macroeconomic and market factors combined to fuel demand for commercial real estate.
Labor Shortage Impact
- Labor shortages affect project timelines and risk mitigation in development by impacting general contractor reliability.
- Evaluate the general contractor's experience and relationships with subcontractors to ensure on-time project delivery.
