Commercial Real Estate Recovery Still Slow

Orlando, FL, Nov. 12, 2012 -- Despite the residential real estate market showing signs of progress and the economy steadily improving, the commercial market continues to recover at a sluggish pace, according to the National Association of Realtors.

However, a positive outlook endures as commercial real estate remains a solid investment, according to NAR Chief Economist Lawrence Yun at the 2012 Realtors Conference and Expo.

“The commercial real estate market was an innocent bystander of the housing crisis, and the broad credit tightening has made it much longer for the market to recover,” said Yun.

“Commercial real estate depends on an expanding economy, as well as available credit, something that is extremely tight right now. However, despite some challenges in the market there are hopeful signs as commercial investments increase, most notably in the multifamily sector.”

Yun pointed out that most commercial sectors are continuing at a slow recovery pace. Demand for office space is modest. Yun predicts office completions will be low through the next year. Similar scenarios exist in the industrial and retail sectors, as well.

The multifamily sector maintains steady growth and vacancy rates continue to drop while rents firm up.

Yun highlighted that multifamily is the only sector where rents are outpacing inflation. Apartment vacancy rates have continued to decrease mostly due to young people who cannot obtain a mortgage, as well as families who encountered foreclosure.

Calvin Schnure, vice president, research and industry information at NAREIT, voiced similar predictions for the multifamily sector. “Pent-up demand continues to drive the multifamily sector while new supply falls short,” said Schnure.

“Market conditions for multifamily have tightened since the housing crisis. There will continue to be improvement in all commercial sectors over the next few years; meanwhile very little supply will have much more demand on the market.” 



Other Archived Articles

Mortgage Application Volume Rises Last Week   Full Article
Washington, DC, Oct. 8, 2014 -- Mortgage application volume increased 3.8% last week from the previous week, according to the Mortgage Bankers Association.

Got You Floored on Fast 50 List in Piedmont Region   Full Article
Greensboro, NC, Oct. 8, 2014 -- -Got You Floored, Inc. was named by the Triad Business Journal to the Fast 50 for the Piedmont Triad Region in North Carolina.

Georgia Gov. Deal Visits Mohawk in Calhoun   Full Article
Calhoun, GA, Oct. 7, 2014 -- Earlier this week, Georgia Gov. Nathan Deal toured the Mohawk Flooring Center in Calhoun and spoke to employees about the importance of the flooring industry in the state of Georgia.

Interface Issues Third Quarter Earnings Warning   Full Article
New York, NY, Oct. 8, 2014 -- Shares of Interface fell 16.5% in after-hours trading Tuesday after the company announced lower-than-expected preliminary third-quarter results.

National Retail Federation Expects Holiday Sales Boost   Full Article
Washington, DC, Oct. 7, 2014 -- Retail spending during the holiday season is expected to be the highest in three years, according to a forecast by the National Retail Federation.

Job Openings Highest Since 2001   Full Article
Washington, DC, Oct. 7, 2014 -- Job openings increased to 4.84 million in August, up from 4.67 million in July, according to the latest Job Openings and Labor Turnover Survey.

Builders Offering Incentives as Sales Soften   Full Article
New York, NY, Oct. 7, 2014 -- Home builders nationally have begun sweetening offers in light of slowing sales, according to a Bloomberg News story.

Domotex To Feature Installation Technology for First Time   Full Article
Hannover, Germany, Oct. 7, 2014 -- Domotex 2015 set for Jan. 17-20 will feature 1,300 exhibitors from more than 60 countries.

Fincibec Group Seeking Tile Award Entries   Full Article
Sassuolo, Italy, Oct. 6, 2014 -- The Quinquennial Tile Award, now in its fourth edition, seeking entries using the Fincibec Group's three brands, Century, Monocibec and Naxos, between Jan. 1, 2011 and Dec. 31, 2015.

Armstrong Raising Some Vinyl Prices   Full Article
Lancaster, PA, Oct. 6, 2014 -- Armstrong said it will raise prices in the U.S. and Canada on commercial vinyl composition tile and BioBased Tile by 4%, commercial wallbase by 4%, and select residential tile products.

Stifel Sees Stronger Hard Surface Sales, Weaker Carpet Sales   Full Article
New York, NY, Oct. 6, 2014 -- Analyst Stifel Nicolaus believes that third quarter flooring sales will show stronger sales of hard surface flooring and weaker sales of carpet.

NeoCon East Offers Education for Designers   Full Article
Baltimore, MD, Oct. 6, 2014 -- NeoCon East has announced its educational program for design professionals seeking continuing education.

Duncan Appointed President of Mannington's Residential Business   Full Article
Salem, NJ, Oct. 3, 2014 -- Mannington Mills announced today that Ed Duncan will replace Kim Holm, who is retiring, as president of Mannington’s Residential Business.

Services Sector Growth Slows in September   Full Article
Washington, DC, Oct. 3, 2014 -- The services sector of the economy grew at a slower pace in September, according to the Institute for Supply Management.

CRI Annual Meeting Set Nov. 12   Full Article
Dalton, GA, Oct. 3, 2014 -- The Carpet and Rug Institute's 2014 Annual Membership Meeting will be held Nov. 12.

Unemployment at Six-Year Low in September   Full Article
Washington, DC, Oct. 3, 2014 -- The unemployment rate fell to 5.9% in September as the economy created 248,000 jobs, according to the Labor Department.

Foreclosure Rate Lowest Since 2007   Full Article
New York, NY, Oct. 3, 2014 -- The foreclosure rate edged up 1.1% in August compared to July, according to CoreLogic's National Foreclosure Report.

CRI President Yarbrough Goes to Washington   Full Article
Dalton, GA, Oct. 3, 2014 -- Carpet and Rug Institute President Joe W. Yarbrough traveled to Washington, D.C. Sept. 17-18 for two days of back-to-back meetings with congressional representatives.

Dover Rug & Home a Finalist in Association Awards   Full Article
Cambridge, MA, Oct. 3, 2014 -- Dover Rug & Home said it has been named a Family Business Association (FBA) Awards finalist in the category of Fourth Generation Businesses.

Factory Orders Fall on Fewer Aircraft   Full Article
Washington, DC, Oct. 2, 2014 -- Factory orders fell in August on weakness in the aircraft sector, according to the U.S. Census Bureau.