A new report released by the National Association of Realtors (NAR) has claimed that its latest figures show that commercial property across the country is poised for growth, despite perceived bumps in the road that could be caused by the struggles being witnessed in the jobs sector.
The data showed that across all sectors of the property market underlying fundamentals were supporting growth. Lawrence Yun, the chief economist for the National Association of Realtors, said: "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. 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."
Vacancy rates are still high and coming in above the historic averages, with the typical vacancy rate being 14.4% for the office market. This drops down to 10.1% for industrial, with a further fall to 8.1% in retail. Multifamily comes in lowest of all, with a vacancy rate of 5.8%.
The National Association of Realtors has noted that there has been a small decline in the number of vacancies available, which is a positive sign for the market. As rents are expected to increase across the second half of the year, the NAR sees no reason why the vacancy rates will not continue to drop.
In addition to a rise in commercial rents, apartment rents are also expected to rise by up to 4.1% over the course of 2012.
