The National Association of Realtors (NAR) released its quarterly commercial real estate forecast this month indicating that all of the major commercial real estate sectors are seeing improved fundamentals. Lawrence Yun, NAR chief economist, commented on the Commercial Real Estate Market Survey saying vacancy rates are improving in all of the major commercial real estate sectors. "Sustained job creation is benefiting commercial real estate sectors by increasing demand for space," he said. "Vacancy rates are steadily falling. Leasing is on the rise and rents are showing signs of strengthening, especially in the apartment market where rents are rising the fastest."
An excerpt from the office markets summary:
Vacancy rates in the office sector are projected to fall from 16.4% in the current quarter to 16.0% in the first quarter of 2013.
The markets with the lowest office vacancy rates presently are Washington, D.C., with a vacancy rate of 9.5%; New York City, at 10.0%; and New Orleans, 12.4%.
After rising 1.6% in 2011, office rents should increase another 1.9% this year and 2.4% in 2013. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is forecast at 20.1 million square feet in 2012 and 28.1 million next year.
NAR has made the Commercial Real Estate Market Survey available here. For more news and information, visit Blumberg Capital Partners.
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