|NCCMLS Market Update - Commercial Real Estate Market Statistics|
Another Market Update by NCCMLS
According to the National Association of Realtors, the commercial real estate market should see growth in 2011 and 2012. “Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8 percent by the end of the year,” NAR Chief Economist Lawrence Yun said in a prepared statement. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising.”
Over the next 12 months, NAR forecasts office vacancies will drop 1 percent; industrial properties .9 percent, retail space vacancies .5 percent, and multi-family properties vacancies will fall by 1.1 percent.
Supply and demand would also suggest that as vacancy rates drop, and less product is underdevelopment, rates will rise. office rents are projected to rise .3% this year and another 4.3 percent in 2012.
The Society of industrial and office Realtors (SIOR) is reporting stronger market fundamentals. The SIOR commercial real estate Index rose 6.8 percentage points to 57.5 in the first quarter. That is the highest since the fall of 2008. Vacancy rates are improving, but concessions continue to make it a tenant’s market.
With dropping vacancies and rising rents, now is the time to take advantage of cheap REIT stocks.
Related Publicly Traded Companies:
CB Richard Ellis Group, Inc. (NYSE:CBG)
Boston Properties, Inc. (NYSE:BXP)
Jones Lang LaSalle Incorporated (NYSE:JLL)
Grubb & Ellis Company (NYSE:GBE)
Kennedy-Wilson Holdings, Inc. (NYSE:KW)
HFF, Inc. (NYSE:HF)
Forest City Enterprises, Inc. (NYSE:FCE.A)
Mack-Cali Realty Corp. (NYSE:CLI)
Highwoods Properties, Inc. (NYSE:HIW)
Government Properties Income Trust (NYSE:GOV)
Cousins Properties Inc (NYSE:CUZ)
Douglas Emmett, Inc. (NYSE:DEI)
Brandywine Realty Trust (NYSE:BDN)
SL Green Realty Corp. (NYSE:SLG)
Vornado Realty Trust (NYSE:VNO)
MPG office Trust, Inc. (NYSE:MPG)
Kite Realty Group Trust (NYSE:KRG)
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