Straight from our commercial economist at the National Association of REALTORS®, George Ratiu provides the February Commercial Real Estate Outlook and Forecast. Watch and listen above as George outlines the fundamentals behind why NAR sees the CRE market entering a period of stabilization.
A highlight, George notices higher demand for space and vacancy rates coming down – although he thinks stronger rents will take longer to achieve. Not surprising, multifamily remains the strongest sector in large part demand is high due to housing problems and the consequent need for apartments and condos.
As George points out, “Commercial economic growth always lags behind residential and sales and investments through 2009 were at record lows. The picture improved markedly in 2010 with sales of $120 billion – up 100% over ‘09, and 2011 is well on track to best 2010.”
All markets will not recover at the same pace and properties of high quality in strong markets on both coasts are seeing stronger demand than many inland regions. Two additional drags impact CRE – job growth continues to be a factor for as filling space is dependent on employment and NAR members report that financing is still hard to get.
Speaking of financing, NAR Research is in the process of wrapping up a survey of REALTORS® about the availability of CRE financing. Stay tuned here for the exclusive results of this important sentiment survey. Subscribe to our RSS feed, bookmark us, or follow us on Twitter (@commsource) or FaceBook (CommercialSource.com product/service page) for updates.
- Tenants snap up office space in first quarter (theglobeandmail.com)