The National Association of Realtors is feeling somewhat hopeful about the commercial real estate market, projecting that vacancy rates in the non-residential sector will improve in the coming year.
In a new report NAR says CRE markets "appear to be stabilizing," predicting that "modestly declining" vacancy rates will continue as 2011 progresses.
NAR chief economist Lawrence Yun notes that the multifamily market has held up better than most CRE asset classes and predicts that rents could rise by one or two percent next year. "This rent rise therefore could start to force up broader consumer prices as well," he said.
A recent survey conducted by the Society of Industrial and Office Realtors shows that commercial vacancy rates are slowly improving but rents continue to be soft "with elevated levels of subleasing on the market."
