Commercial Real Estate Is Primed for a Comeback

WASHINGTON, DC-From office properties to retail facilities, the commercial real estate market is headed for positive change. The National Association of Realtors has reported that economic growth and an upward trend in business confidence will help turnaround high vacancy rates across the board. The organization presented the forecast at its National Association of Realtors Midyear Legislative Meetings & Trade Expo. NAR relied on Property & Portfolio Research for the statistics.

“Durable goods orders have been trending up, manufacturers are hiring again and payroll data is on the rise,” NAR chief economist David Lereah says in a statement from the meeting. “Business spending will continue to grow and that will directly feed into a rising demand for commercial real estate space.” Office vacancies are expected to stabilize as the job market starts to rise from the ashes, and there will be a minimal increase in rents this year before the rates increase by 3.5% next year.