Despite the Economy, Demand for Commerical Property will Improve

Commercial Property Still Attractive

    Even though a majority of the commercial real estate sectors are still experiencing hardships with office and retail vacancies continuing to rise there is some light at the end of the tunnel. The National Association of Realtors (NAR) has said with imports and exports in the U.S. rising, the demand for industrial and commercial space will improve. NAR research has shown that multifamily units are still performing well.  That the vacancy rates for many multifamily properties are falling and rents are expected to rise.  This is mostly due to home ownership rates falling and people postponing home purchases in the short term.

NAR’s 2011 commercial forecast shows steady improvement in the market with rents stabilizing and net absorption slowly improving. NAR also predicts a moderate GDP expansion of 2 percent to 2.5 percent in the next two years and an unemployment rate of eight percent in 2012 and six percent in 2015.  With these kind of numbers the future is bright and there is optimism that the hardships in the commercial market will come to an end and the beginning of a steady growth in revenue.