Commercial market forecast
by Bill Roark - posted Thursday, February 7th, 2013 @ 12:14 pm
The commercial real estate market is responding slowly to a recovering economy. The National Association of Realtors (NAR) projects the demand for all types of commercial space will increase in 2013.
The greatest factor retarding increased growth is the uncertainty regarding new regulations and taxes along with increased mortgage requirements. This is especially affecting the increased occupancy of smaller properties that appeal to the small business which makes up the large majority of occupants for this space. NAR predicts the decline in the vacancy factor for all types of commercial real estate is projected to only reach 1 percent in 2013.
Office space vacancy is expected to decline to 15.7 percent nationally, industrial space vacancy will decline to 9.5 percent, retail space will decline to 10.6 percent and the multi-family vacancy only .1 percent. While the decline is very modest it is expected that in all categories rents will slightly increase due to increased taxes and operation costs. Leading the way, in increased rents is the multi-family market with a 4.1 percent increase projected in 2013.
Bill Roark is a Commercial Associate Broker at Keller Williams Realty and may be contacted at email@example.com.