Rising Rents, Shrinking Space
There may be less commercial rental space available in the coming year and renters should expect to pay more for apartments. NAR’s latest Commercial Real Estate Outlook predicts national commercial vacancy rates will decline 0.2 percentage points in the office sector, 0.6 point in industrial markets, and 0.6 point for retail spaces. Meanwhile, the multifamily vacancy rate is unlikely to change over the next year; the sector is still experiencing the tightest level of availability and pushing rent increases as much as 4.0 percent this year and another 4.0 percent next year.
Office rents are expected to increase 2.5 percent this year and 2.8 percent in 2014. Industrial rents are expected to rise 2.4 percent this year and 2.6 percent in 2014. Retail rents should increase 1.5 percent in 2013 and 2.3 percent next year.
- “Ready for homeownership?"
NAR’s 2013 National Housing Pulse Survey revealed that more renters than in past years are thinking about homeownership. Talk to a Realtor® to see if rising rents are encouraging renters to seek homeownership. Talk to renters to see what rising rents in 2014 will mean for their future housing plans.