The four major sectors of the commercial real estate market are likely to see improvement over the next two years, according to a forecast presented at a commercial real estate forum at the National Association of Realtors Midyear Legislative Meetings & Trade Expo. NAR chief economist David Lereah said that although there are some uncertainties that could potentially affect the major commercial sectors -- office, retail, industrial and multifamily -- on balance the fundamentals are improving. "We've seen a strengthening in the job market, capital has been flowing back into commercial real estate at record levels, the modest rise in interest rates in not [affecting] long-term investment, and there's been a healthy restocking of business inventories," he said.

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