Commercial vacancy rates to decline: NAR

New York /
Feb.February 25, 2011 03:16 PM

Though the commercial real estate market nationwide is stabilizing, most market-rate rents will remain soft except in the multi-family sector, according to the National Association of Realtors. Lawrence Yun, chief economist at NAR, said that a pullback in construction is helping stabilize the market. “Very limited construction of new commercial real estate over the past few years has essentially fixed the supply of available space,” he said. “This means vacancy rates could fall quickly from any increase in demand for commercial space.” From the first quarter of this year to the first quarter of 2012, NAR expects vacancy rates to decline .5 percentage points in the office sector, 1.3 points in industrial real estate, .1 point in the retail sector and .9 percentage points in the multi-family rental market. “Even with declining vacancy rates, rents are not likely to turn positive in most markets until next year, outside of multi-family rental properties,” Yun said. TRD


Related Articles

arrow_forward_ios
HqO CEO Chase Garbarino (HqO via Facebook)
Big landlords invest $60M in “tenant experience” startup HqO
Big landlords invest $60M in “tenant experience” startup HqO
Rudin Management’s Michael Rudin and Industrious’ Justin Stewart with 32 Sixth Avenue in Tribeca (Rudin, Industrious, Google Maps)
Rudin teams up with Industrious for flex-office play
Rudin teams up with Industrious for flex-office play
About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
Manhattan office market’s 25% drop is ominous sign for landlords
Manhattan office market’s 25% drop is ominous sign for landlords
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
More companies are keeping their offices, but are downsizing those spaces to allow employees to work remotely part-time. (iStock)
Office landlords offer discounts to lock in leases
Office landlords offer discounts to lock in leases
Rudin Management CEO Bill Rudin and 3 Times Square (Getty, FXCollaborative)
Rudin taps Cushman to market 3 Times Square, plans makeover
Rudin taps Cushman to market 3 Times Square, plans makeover
From left: Vornado Realty Trust’s 11 Penn Plaza and Apple’s Tim Cook, The Farley Post Office building and Facebook’s Mark Zuckerberg, Durst Organization’s One Five One and ByteDance CEO Zhang Yiming (Getty, VNO, SOM, Durst)
Big Tech firms led office leasing in 2020
Big Tech firms led office leasing in 2020
The gains accounted for nearly a third of overall job growth. (iStock)
Construction, leisure & hospitality jobs rebounded in March
Construction, leisure & hospitality jobs rebounded in March
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...