Browse Category: NAR

2016 Q2 CRE Market Survey: The Trends Are Your Friends

National Association of Realtors, Washington, ...

Who says you can’t look back? National Association of REALTORS® has released its second quarter 2016 Commercial Real Estate Market Survey, and the takeaways appear pretty good for the national commercial real estate market picture for 2Q.

In June 2016, a random sampling of over 62,000 NAR members with an interest in commercial real estate was asked for their input.  Nearly 1,000 responded with completed surveys, for a response rate of 1.6%.

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Survey: CRE Lending Trends

The NAR Commercial annual report Commercial Real Estate Lending Trends 2016 is now available for free download. The 31-page overview of the national commercial property markets includes a great many leading and trailing indicators that situate the commercial property markets in the wider economy.  Wondering what sector added the most jobs in 2015?  (It was business and professional services.)  Like to know the total CRE closed transactions in ’15?  $534 billion, says NAR research partner Real Capital Analytics.  Interested in the national average for a commercial real estate deal in 2015? $1.8 million.

You can get this overview for free in two ways.  Download a PDF using this link, or peruse the report clicking on the image right below in this page.  Happy reading!

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Average Sales Volume, Prices Up: 2015 Q4 Commercial Real Estate Market Survey

The latest survey of the national CRE market was published late last week. The key takeaways from the most recent survey sampling randomly from nearly 50,000 REALTORSⓇ holding an interest in CRE:

  • Sixty-six percent of commercial REALTORS® closed a sale.
  • Sales volume rose 7.4 percent from one year ago.
  • Sales prices increased 4.1 percent year-over-year.
  • Cap rates averaged 7.8 percent.
  • The average estimated transaction value slid from $1.9 million in Q3 2015 to $1.6 million in Q4 2015.
  • Sixty-three percent of members completed a lease transaction.
  • Leasing volume advanced 3.0 percent from previous quarter.
  • Leasing rates increased 2.5 percent over the previous quarter.
  • Concession levels declined 3.1 percent on a quarterly basis.
  • Inventory shortage topped the list of current challenges, followed by buyer-seller pricing gap and local economic conditions.

To read the entire report, click below!

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Commercial REALTORS®: Apply For The 2016 Commercial Innovation Grant

Through its Commercial Innovation Grant program, he National Association of REALTORS® (NAR) is interested in funding “game-changing ideas that deliver a benefit to commercial members or add value to commercial real estate professionals.”

Grant applicants can be local associations, or individual members who are deemed to meet the innovation criteria.  The full list of criteria,  found on the program application, touch on measurability, budget, educating the genera: membership, and other key criteria.

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Latest NAR Commercial Real Estate Outlook

 

NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information.

Office Markets

Office vacancy rates are forecast to slightly decline from 15.7 percent in the fourth quarter to 15.6 percent through the fourth quarter of 2015.

The markets with the lowest office vacancy rates in the fourth quarter are Washington, D.C., at 9.3 percent; New York City, 9.6 percent; Little Rock, Ark., 11.6 percent; San Francisco, 12.2 percent; and Seattle, at 12.8 percent.

Office rents are projected to increase 2.4 percent in 2014 and 3.3 percent next year. 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 likely to total 35.6 million square feet this year and 48.8 million in 2015.

Industrial Markets 

Industrial vacancy rates are expected to fall from 8.8 percent in the fourth quarter to 8.4 percent in the fourth quarter of 2015.

The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.6 percent; Los Angeles, 3.7 percent; Seattle, 5.8 percent; Miami, 6.0; and Palm Beach, Fla., at 6.5 percent.

Annual industrial rents should rise 2.4 percent this year and 2.9 percent in 2015. Net absorption of industrial space nationally is expected to total 110.7 million square feet in 2014 and 102.5 million square feet next year.

Retail Markets

Vacancy rates in the retail market are expected to decline from 9.7 percent currently to 9.5 percent in the fourth quarter of 2015.

Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.5 percent; Fairfield County, Conn., 3.9 percent; San Jose, Calif., 4.6 percent; Orange County, Calif., 5.2 percent; and Long Island, N.Y., at 5.3 percent.

Average retail rents are forecast to rise 2.0 percent in 2014 and 2.5 percent next year. Net absorption of retail space is likely to total 11.4 million square feet this year and jump to 18.9 million in 2015.

Multifamily Markets

The apartment rental market – multifamily housing – should see vacancy rates slightly increase from 4.0 percent currently to 4.3 percent in the fourth quarter of 2015. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent.

Areas with the lowest multifamily vacancy rates currently are Orange County, Calif., and Sacramento, Calif., at 2.2 percent; Providence, R.I., and New Haven, Conn., at 2.3 percent; and Hartford, Conn., at 2.5 percent.

Average apartment rents are projected to rise 4.0 this year and 3.9 percent in 2015. Multifamily net absorption is expected to total 216,300 units in 2014 and 171,200 next year.