While the market awaits the interest rate cuts from the Federal Reserve, commercial real estate is also on hold. The office sector ended the second quarter with a record-high vacancy rate of 13.8%, though the increase in unoccupied spaces has slowed down. The retail sector continues to have the lowest vacancy rate among all sectors, but demand for retail spaces has further decreased. The industrial sector’s fundamentals also softened in the second quarter, with net absorption hovering at levels not seen since 2012. However, demand for apartments continued to surge as seven percent mortgage rates hurt housing affordability. Click HERE for the full report from NAR.