Commercial Real Estate Demands Inflate in Areas Surrounding Katrina Devastation

WASHINGTON, DC-In its September Commercial Real Estate Spotlight, the National Association of Realtors has concluded that space demand in nearly all sectors of commercial real estate has pointedly increased, and will continue to do so, in the regions neighboring the areas hard-hit by Katrina. NAR predicts a potential decline by as much as 3% in office and industrial property vacancy rates in Houston, Dallas-Fort Worth, Atlanta, Tampa and Miami by the end of next year as a result of the Katrina devastation.

“Over the last week, we’ve been hearing about rapid absorption of commercial inventories in nearby areas that survived widespread hurricane damage,” NAR chief economics David Lereah says. “The greatest demand appears to be in the industrial, multifamily and office markets, but the long-term impact from Hurricane Katrina is uncertain as displaced tenants rethink their future.”