Slow Improvement Predicted in National Commercial Real Estate

by Arkansas Business Staff  on Monday, Mar. 11, 2013 12:00 am  

The National Association of Realtors, based in Washington, D.C., last month released its “Commercial Real Estate Outlook” for the quarter. The report details the market outlook in major commercial real estate sectors and summarizes the forecasts for all of 2013 and 2014.

“Major commercial real estate sectors continue to improve, albeit slowly, with gradual economic improvement and job creation driving absorption of space,” the NAR said in a press release accompanying the report.

Lawrence Yun, the association’s chief economist, noted that demand for rental housing had been particularly high.

“Rent increases have been higher in multifamily housing where supply is not matching strong demand, thereby allowing landlords to raise rents at faster rates,” he said. “Overall commercial real estate leasing activity continued to grow in most markets during the closing months of 2012, which is modestly lowering vacancy rates in all of the commercial sectors early this year.”

Commercial Forecast
2013, Q1

20132014
OFFICE    
Vacancy Rate 15.9% 15.7%
Rent Growth 2.6% 2.8%
     
INDUSTRIAL    
Vacancy Rate 9.5% 9%
Rent Growth 2.3% 2.6%
     
RETAIL    
Vacancy Rate 10.6% 10.1%
Rent Growth 1.5% 2.1%
     
MULTI-FAMILY    
Vacancy Rate 3.9% 4%
Rent Growth 4.6% 4.7%

 

Credit: National Association of Realtors “Commercial Real Estate Outlook”

 

 

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