According to NAR's chief economist, Dr. David Lereah, the report shows that 2000 was a solid year for the commercial marketplace. However, a slight slowdown in all of the sectors except for multifamily housing should be expected. Multifamily housing should remain fairly stable.
The NAR reported resilience in the office market as the national vacancy rate tightened to 9.7% in the third quarter. Demand for office space rose 4% from a year earlier, whilesupply increased by only 2.6%.
New construction should bring office inventory vacancy rates up to 10.6% in 2001 in comparison with a projected 9.8% in 2000. Rental rates will be more negotiable averaging $29.35 per sf in 2001, compared to $27.87 per sf in 2000.
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