Commercial Property Sees Improving Conditions

Washington, DC, Nov. 30, 2010 -- The commercial property market may finally be on the mend, according to the National Association of Realtors.

The trade association believes that commercial property vacancies may have peaked, thanks to a rebound in apartment buildings.

“The basic fundamental of rising commercial leasing demand, resulting from a steadily improving economy, means overall vacancy rates have already peaked or will soon top out,” Lawrence Yun, NAR chief economist, said in a statement.

“Multifamily housing is the one commercial sector that has held on relatively well in the past year, and can expect the best performance in 2011.”

The vacancy rate for apartment buildings will decline to 5.8% by the end of next year from 6.4% in the current quarter, according to the NAR forecast.

Retail space may have the smallest decline in vacancies, with the rate slipping to 13% at the end of 2011 from 13.1% this quarter, the group said.