Commercial real estate markets have been relatively flat this year, but improving fundamentals mean a more positive trend is expected in 2012, according to NAR. Read more
commercial markets
Commercial Property Prices
The prices of commercial properties have made a spectacular recovery in the past two years, with a rise of 48 percent from early 2009. This seems positive, but let’s take another look. Read more.
Weak Economy Softens Commercial Markets
Economic activity weakened during the second quarter of 2011. Economic activity, as measured by gross domestic product, advanced a modest 1.3 percent during the quarter. In addition, the figures for the first quarter were revised downward from 1.8 percent to 0.4 percent, indicating a weaker than expected economy. More >
Commercial Markets Stabilizing
Commercial real estate markets are flattening out, with modestly improving fundamentals expected in 2011, NAR says. ‘œThe basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,’ says NAR Chief Economist Lawrence Yun. ‘œThe outlook for the office and industrial markets has moderated with modestly declining vacancy rates expected as 2011 progresses, while the retail sector should hold fairly steady. Still, high vacancy rates imply falling rents.’ Yun anticipates a rise in household formation from an improving economy, which will increase demand for housing, both ownership and rental.
