Commercial Real Estate Had a Good Year
The residential real estate market definitely followed a rocky road in 2006, but commercial real estate overall appeared to fare much better. According the the National Association of Realtors, more than $236 billion of commercial real estate transaction volume was recorded during the first 10 months of 2006. This was compared to $231.9 billion in 2005.
The Commercial Real Estate Outlook report also noted rising rents and occupancy rates for office and industrial buildings. Office buildings, accounted for 8 of the year’s 10 biggest real estate deals, represented $105 billion in transaction volume in the first 11 months of 2006, a 31% increase over the same period in 2005.
Furthermore, all indicators suggest that 2007 will also continue to be a good year for commercial real estate investors.