Commercial Market Sees Signs of Slowing
While the commercial real estate market had expanded in the first quarter of 2007, it appears to now be showing signs of cooling, according to the National Association of Realtors (NAR). In the first quarter of 2007, the NAR reported its index on future commercial property activity rose to a record high, up from the same 2006 quarter.
However, deteriorating economic conditions now appear to be dragging the market down. Reasons for the slowing included a marked decline in durable goods shipments, a decline in return on commercial investment and an increase in the number of people filing for unemployment insurance.
Yet, despite these factors, the NAR still believes that the commercial real estate market will continue to perform well in 2007, just at a slower pace the originally projected.