They are all of the major commercial real estate sectors in the US are seeing improved fundamentals to multifamily housing is becoming a landlord’s market commanding bigger rent increases in the latest Commercial Real Estate Market Survey from the National Association of Realtors shows and the lawrence yun, NAR chief economist, said vacancy rates are improving in all of the major commercial real estate sectors to a sustained job creation is benefiting commercial real estate sectors by increasing demand for space, he pointed out.
The NAR forecasts commercial vacancy rates over the next year to decline 0.4% in the office sector, 0.8% in industrial real estate, 0.9% in the retail sector and 0.2% in the multifamily rental market to household formation appears to be rising from pent up demand to the tight apartment market should encourage more apartment construction to rent increases could further accelerate in the near to intermediate term explained Yun says they are construction activity is still low, with 95% of experts reporting it is below normal, and 83% said it is a buyers’ market for development acquisitions in prices are below construction costs in 78% of markets.
A vacancy rates in the office sector are projected to fall from 16.4% in the current quarter to 16% in the 1st quarter of 2013 and the areas with the lowest multifamily vacancy rates currently are New York City at 1.8%, Minneapolis and Portland, Oregon, both at 2.5% and San Jose, California at 2.7% to after rising 2.2% last year, average apartment rent is expected to increase 3.8% in 2012 and the another 4% next year in multifamily net absorption is forecast at 209,900 units this year and 223,600 in 2013.
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