NAR Sees Healthy CRE Fundamentals

The fundamentals in the commercial real estate market remain healthy, according to the National Association of Realtors.A record $325 billion was invested in commercial real estate in the first 10 months of 2007, up from $306.8 billion for all of last year, the NAR reported in its latest Commercial Real Estate Outlook. "Although vacancy rates remain relatively low for all sectors, they are expected to rise slightly in the office and industrial markets during the coming year because much of the space being absorbed is in high-quality buildings or is built to suit," said NAR chief economist Lawrence Yun. "As a result, there is a fair amount of older space on the market, particularly in the industrial sector where obsolescence is a factor, although industrial rents are showing healthy gains. Vacancy rates in the retail and multifamily sectors are projected to tighten in 2008, with rents rising in all sectors." The association can be found on the Web at http://www.realtor.org.