NAR Claims Commercial Vacancies Hitting Their Peak
The National Association of Realtors said that it expects the commercial vacancy rate to peak at 16.7 percent before it starts a gradual decline over the next year. The commercial real estate sector has dragged down GDP in 9 of the last 10 quarters and its decline continues to impede the overall recovery. However improving market conditions and moderating trends in both rents and vacancy rates have given hope that the market’s woes are beginning to crest.
According to this report, vacancies will remain high but won’t approach the levels seen in the early 1990s when commercial vacancies spiked to even higher levels as a result of overbuilding.
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