Commercial: Improving, Although Credit Remains Issue

Multifamily is the commercial sector faring best right now. It’s™ seeing vacancies shrink and absorption improving, although rental rate gains are modest at best. The other sectors are improving a little, too. Vacancies are still heading in the wrong direction and absorption isn’™t where it could be if financing didn’™t remain so challenging to get. NAR Chief Economist Lawrence Yun thinks credit could start loosening as banks, sitting on lots of cash, feel pressure to start lending again. Yun gave his outlook last week at the NAR Conference & Expo. Access a summary and his slides.