Posted on: August 27th, 2012 by admin@cpp
The modest recovery seen in the commercial property market could be seen in the Atlanta commercial real estate situation, specifically. This is because there may continue to be slow progress over the next year in commercial vacancy rates, according to a report from the National Association of Realtors.
There has been a lack of sharp of rent growth in many sectors except for multifamily property. Much of this has continued because demand remained high in past quarters, while no significant additions were added to the inventory, the report noted. This kept the multifamily market below its average vacancy rate.
Overall, looking over the next year's statistics, NAR said that vacancy rates will likely change little during the next year. While the third quarter should finish with a rate around 4.3 percent, the same point next year shouldn't be much different.
The country's employment situation may have had an effect on many of the markets, the report explained. With many companies neglecting hiring, this could continue to prevent significant vacancy declines.
"Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector," said Lawrence Yun, chief economist for NAR. "Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally are down, trade has been robust with India, China and other Asian nations, along with Brazil, Mexico and our strongest trading partner ? Canada."
Yun also noted that while many companies do have the funds to do more in the market at the present time, the complications surrounding the industry may prevent them from taking full advantage. In addition, this became more difficult in recent times, as lending has been slow to some sectors. Many larger institutions have pulled back lending levels, and if smaller banks do this, it could make the situation tricky.
Even with this in mind, the report added that every market should see a decline in vacancy rates over the next year, even if it is not significant. The office market should have the most significant decline in vacancies ? from 16.1 percent to 15.6 percent through the third quarter of next year ? while the industrial and retail markets should both see vacancy rates below 11 percent.
If you own or are considering a commercial building purchase or lease, contact Daniel Levison or Furman Wood of Commercial Property Professionals.
april fools pranks livan hernandez soledad o brien mega ball lottery winner lottery numbers mega millions lottery
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.