Commercial Real Estate Market Growth
January 29th, 2007
Record investment is spurring continuing growth in the commercial real estate market, which is also enjoying tighter vacancy rates and higher rents in some sectors, according to the National Association of Realtors.
“The office and industrial markets continue to shine, supported by job growth and trade, while the rental apartment sector is seeing healthy rent increases,” said David Lereah, chief economist for the NAR, citing the recently released study. “The retail sector is essentially flat, but the hotel industry is doing better than at any time since 2001.”
The “Commercial Real Estate Outlook” analyzed quarterly date in the office, industrial, retail, multifamily and hospitality sectors.
“We’re setting another record this year for investment in commercial real estate,” said James Marrelli, NAR vice president of commercial real estate. “Institutional investors, pension funds and foreign investors have focused on commercial-grade properties to diversify portfolio assets, with expectations of solid long-term gains.”
Key findings of the report indicate that: