NAR s latest Commercial Real Estate Outlook(1) offers projections for four major commercial sectors

Shaking off a prolonged impact from the recession, fundamentals are gradually improving in all of the major commercial real estate sectors, according to the National Association of Realtors(R) tropicana atlantic city hotel and casino quarterly commercial real estate forecast. The apartment rental sector tropicana atlantic city hotel and casino has fully recovered and is growing.
Lawrence Yun, NAR chief economist, said new jobs are the key. Ongoing job creation, which is at a higher level this year, is fueling an underlying demand for commercial real estate space, assisted by a steady increase in consumer spending, he said. The pattern shows gradually declining commercial vacancy rates, with consequential but generally modest rent growth.
Yun expects the economy to add 2 to 2.5 million jobs both this year and in 2013, on the heels of 1.7 million new jobs in 2011, assuming a new federal budget is passed before the end of the year. Although we need even stronger job growth, by far the greatest impact of job creation is in multifamily housing, where newly formed households striking out on their own have increased demand for apartment rentals this is the sector with the lowest vacancy rates and strongest rent growth, which is attracting many investors.
A large problem remains for purchases of commercial property priced under $2.5 million. tropicana atlantic city hotel and casino Our recent commercial lending survey shows that there is very little capital available for small business, which is significantly tropicana atlantic city hotel and casino impacting commercial real estate transactions, although funding is less restrictive for bigger properties.
NAR s latest Commercial Real Estate Outlook(1) offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, tropicana atlantic city hotel and casino retail and multifamily markets. Historic tropicana atlantic city hotel and casino data for metro areas were provided by REIS, Inc.,(2) a source of commercial real estate performance information.
Office rents should increase 2.0 percent this year and 2.5 percent 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 24.7 million square feet in 2012 and 48.0 million next year.
Annual tropicana atlantic city hotel and casino industrial rent is expected to rise 1.6 percent in 2012 and 2.4 percent next year. Net absorption of industrial space nationally is seen at 44.1 million square feet this year and 62.4 million in 2013.
Multifamily Markets The apartment rental market multifamily housing is likely to see vacancy rates drop from 4.5 percent in the second quarter to 4.3 percent in the second quarter of 2013; apartment vacancy rates below 5 percent tropicana atlantic city hotel and casino generally are considered a landlord s market with demand justifying higher rents.
After rising 2.2 percent last year, average apartment rent is expected to increase 4.0 percent in 2012 and another 4.1 percent next year. Such a rent increase will raise the core consumer inflation rate. The Federal Reserve, in turn, may be forced to raise interest rates, possibly as early as late 2013.
Its great that more jobs are opening this time, more people are given the opportunity to go back to work and earn and be able to buy real estate. With this increase in jobs commercial real estate will increase again.
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