Commercial Real Estate to Rally in 2004 and Beyond

WASHINGTON, DC-The future looks bright for the commercial real estate industry. In its most recent publication of Commercial Real Estate Quarterly, the National Association of Realtors has concluded that occupancy rates across the board–from office and retail properties to multifamily and warehouse spaces–will see significant progress in 2004 and 2005. While the Washington, DC area has managed to keep its head above water, specifically in the office market, other major metropolitan areas have been hit very hard over the last two years, so NAR’s news gives reason for celebration from a national standpoint.

There are major hints of the impending turnaround in NAR’s report. The analysis showed a net positive absorption of space in all commercial real estate sectors during the third quarter. And there is more good news to come. “A strong improvement in gross domestic product, a jump in consumer spending, and an improved business climate that includes rising business spending and higher corporate profits support a turnaround in commercial real estate,” NAR chief economist David Lereah explains.