NAR Sees Improving CRE Market

A rebound in economic growth and job gains over the next year, combined with a decline in oil prices and increased spending by businesses, bodes well for the commercial real estate sector, according to the National Association of Realtors.Walt McDonald, president of the NAR, said vacancy rates have been "steadily declining" for various commercial property types due to a growing demand for space. "It looks like we'll see an acceleration in the demand for space over the next year with declining vacancy rates in the office, industrial, and multifamily sectors," Mr. McDonald said. Based on data provided by Boston-based Torto Wheaton Research, the NAR reported that office and industrial markets on the East and West Coasts are faring the best. Net absorption of office space should total 45.3 million square feet this year, up from 20 million square feet in 2003, the NAR said. The association said it expects net absorption in the multifamily sector to be at 260,000 units, compared with 159,400 units for 2003. The NAR can be found on the Internet at http://realtor.org.