NAR Reports Commercial Real Estate Market Improving
The NAR is reporting that commercial real estate investment rose 44% in 2005. This represents over $268 billion in real estate sales in 2005 and does not include transactions valued at less than $5M.
Specifically cited:
Office - vacancy rates are at their lowest level since 2001. Fourth quarter of 2005 showed a rate of 13.6%. By the end of 2006, that is expected to drop to 11%. Rents are expected to rise 5%.
Industrial - vacancy rates projected to fall to 8% in 2006. This is a decrease from the 9.6% levels found in the fourth quarter of 2005. Areas with the lowes vacancies - 5.7% or less - include Las Vegas, Los Angeles, and West Palm Beach.
Retail - vacancy rates projected to fall to 7.8% in 2006. Las Vegas is expected to have one of the lowest vacany rates in 2006.