NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. The highlights are outlined below. Alternatively, click here for the link to the full Q2 Outlook hosted on NAR’s webpage.
Highlights
- Commercial fundamentals in large cap markets echoed the economic slowdown during the quarter.
- Demand for office and apartment properties remained steady, while industrial and retail found a softening in absorption.
- Vacancy rates experienced slight increases, but rent growth remained solid.
- Commercial fundamentals in small cap markets remained positive during the first quarter of 2017, but the pace of growth moderated.
- Leasing volume advanced 2.3 percent from the prior quarter.
- New construction increased by 2.3 percent from the prior quarter, the slowest pace since the first quarter of 2015.