Good News for Commercial Real Estate Market
The National Association of Realtors (NAR) announced today that they expect U.S. commercial real estate to perform well in the coming months. They point to job growth and a tightening supply of office space as the contributors. Additionally, in most markets, institutional investors appear to be more attracted to projects involving industrial and retail space.
David Lereah, NAR’s chief economist, believes strong business investment spending and a low inventory-to-sales ratio will assist in the industrial market’s performance. Facilities for trade and distribution and markets in the West and Southeast are looked at as performing particularly well this year.
For all of 2006, NAR expects 90 million to 95 million square feet to be absorbed.