Realtytimes.com posted a great article about commercial real estate that I wanted to share with you because it shows that we are on the up and up.
According to the latest reports, commercial real estate may be stabilizing and rates are expected to rise about 2 percent in the next year.
NAR’s chief economist said a pullback in construction is helping to stabilize the market. Being that there has been very limited construction of new commercial real estate over the past few years, the supply of available space has essentially been fixed.
He also said that with a renewal of job growth should come increased apartment rent. A larger percentage of the younger population is looking to move away from home, creating a higher demand for apartments. This may lead to a rise in demand and prices.
As job growth is experienced across the nation, vacancy rates should begin to decline across all sectors. We can’t get too anxious for this time though because it may be some distance off in our future.
Things are on the rise and that is wonderful news!