September 21, 2007—Most commercial real estate markets are enjoying relatively low vacancy rates and healthy rent growth from a fundamentally sound economy, according to the latest Commercial Real Estate Outlook of the National Association of Realtors (NAR).
NAR Senior Economist Lawrence Yun said pricing for some commercial real estate has been at a record high, and capitalization rates have been at historic lows. A record $257 billion was invested in commercial real estate in the first seven months of 2007, up from $146.7 billion in same period in 2006. That total does not include transactions valued at less than $5 million, or of investments in the hospitality sector.
The NAR forecast in four major commercial sectors analyses quarterly data for various tracked metro areas. The sectors are the office, industrial, retail and multifamily markets. Metro data were provided by Torto Wheaton Research and Real Capital Analytics.
For more information, see the NAR Web site.
