[ad_1]
\n<\/p>\n
Strengthening demand from smaller markets will help the commercial sector see stable growth and offer<\/a> \u201cdecent\u201d returns for investors in 2017, according to the National Association of REALTORS\u00ae\u2019 quarterly commercial real estate<\/a> forecast.<\/p>\n\n Read more<\/strong>: Contemplating a Career in Commercial Real Estate?<\/span><\/p>\n<\/blockquote>\n\n NAR predicts that the national office vacancy rate will drop 1.1 percentage points to 12.1 percent this year. Job growth in the business and professional services sector is expected to increase the need for office space in 2017.<\/p>\n\n Further, the vacancy rate in the industrial space is predicted to drop 1.3 percentage points to 7.1 percent, while retail space availability will likely drop slightly by 0.7 percentage points to 11.2 percent. The multifamily sector will likely have little change to its vacancy rate over the next year as apartment completions stay at 6.5 percent, NAR reports.<\/p>\n\n \u201cRenewed corporate optimism leading to a focus on investment and a desperately needed boost in residential construction should pave the way for modest expansion this year of around 2.4 percent\u201d in GDP growth, says Lawrence Yun, NAR\u2019s chief economist. \u201cSteady hiring and low local unemployment levels are finally supporting higher wages and increased spending, which in turn bodes well for sustained demand for all commercial property<\/a> types.\u201d<\/p>\n\n The apartment sector is expected to remain the top performer in commercial real estate<\/a>, as supply and affordability challenges continue to block the country\u2019s homeownership rate from any \u201cmeaningful improvement,\u201d NAR notes.\u00a0<\/p>\n\n \u201cEspecially in the costliest metro areas, higher home prices and mortgage<\/a> rates are squeezing the budget for many renters looking to buy and inevitably forcing them to sign a lease for at least another year,\u201d says Yun. \u201cSimilar to the biggest ongoing challenges in the residential market, supply and demand imbalances continue to put upward pressure on commercial property prices as investors search for yield in smaller markets. REALTORS\u00ae are increasingly citing inventory shortages as their top concern as the pace of new projects slows in large cities and middle-tier and smaller markets see a growing appetite for space.\u201d\u00a0<\/p>\n\n Source: National Association of REALTORS\u00ae<\/em><\/p>\n<\/div>\n \n \n<\/pre>\n\n<\/div>\n\n\n\n
[ad_2]\n
Source link <\/a>\n<\/p>\n","protected":false},"excerpt":{"rendered":"