NAR research shows the commercial real estate market continues to move closer toward recovery. This news comes soon after Realtors® reported seeing more movement in the commercial market during the second half of 2010.
Office and industrial properties are seeing occupancy rates increase in most major cities across the U.S. and the apartment sector remains strong with a solid net absorption and rents expected to increase 4 percent nationally in 2011 and 5 percent in 2012. Metro areas could see rents rise to double-digit rates of appreciation.
Affordable prices are proving an attractive incentive for commercial buyers and are translating into increased sales. Unfortunately, tightened lending standards continue to pose a challenge, as national banks are wary of lending. NAR economists believe investment funds through private equity and real estate investment trusts will play a bigger role as the commercial market recovers.
A local perspective… Talk to a Realtor® who specializes in commercial transactions about the local market. What are the trends in your area? Do they reflect the national data? Which commercial sector seems to be healthiest in your community, apartments, office, or industrial?