Most of the major commercial real estate sectors in the United States show gradually improving fundamentals, according to the latest property forecast report from the National Association of Realtors.
They are easily absorbing the relatively small amount of new space that is coming online, with a full recovery already in the multifamily market, it says, as market slowly build momentum.
Job creation is the key to increasing demand in the commercial real estate sectors, according to Lawrence Yun, NAR chief economist. ‘The economy is expected to grow 2.5% next year, and with modest job creation, assuming there is no fiscal cliff, the demand for commercial space will gradually rise. The greatest friction that remains is a tight credit environment, notably for smaller properties,’ he explained. Read more at PropertyWire.com