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US Commercial Property's Positive Position
"Positive underlying fundamentals continue to support all of the major commercial real estate sectors in the United States, but a slowdown in job creation and ongoing tight loan availability has tempered growth in some areas, according to the National ...The National Association of Realtors (NAR) believes commercial property in the U.S. is positioned for growth, although a continuing struggle in the jobs sector may cause bumps in the road. Increased imports and exports are boosting interest in warehouse and industrial properties, while job troubles and loan difficulties for prospective homebuyers are helping advance the residential rentals market. NAR analysts say that while underlying fundamentals look for commercial real estate, over regulation of banks and lending may cause funding for investment to dry up. For more on this continue reading the following article from Property Wire.
In its latest commercial real estate forecast the NAR’s chief economist Lawrence Yun says that there are mixed results among the commercial sectors. ‘Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector,’ he said.
‘Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally are down, trade has been robust with India, China and other Asian nations, along with Brazil, Mexico and our strongest trading partner Canada,’ he added.
Although still positive, dampened demand is slightly moderating rent growth with the exception of the multifamily market, Yun pointed out. ‘Sharply higher demand for apartments is causing rents to rise at faster rates. A return to normal household formation will mean even lower vacancy rates and higher rents in the future,’ he added."
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