Categorized | Commercial

Commercial Real Estate Market Continues to Improve

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The commercial real estate market in the United States will continue to show signs of improvement throughout 2012. The vacancy rate will most likely continue to decline as the jobless rate shows signs of improvement.

 

As job creation continues to improve, the commercial real estate market is set to expand due to the need for more space for a growing workforce. The industrial and retail sectors are expected to show the strongest improvements in vacancy rates. The retail vacancy rate will likely decline by one percent, as will the industrial vacancy rate.

 

Unemployment rate recently hit its lowest point in three years, and economists are expecting it to fall further. The current unemployment rate stands at just over eight percent. Over two hundred and forty thousand jobs were added in January.

 

While the retail and industrial sectors of commercial real estate will likely show the strongest improvements in vacancy rates this year, the multifamily sector has performed the best over the last year. Vacancy rates in the multifamily market are at an astoundingly low four and a half percent, making it an ideal landlord’s market.

 

New York City has an incredibly low multifamily vacancy rate of less than two percent, making it a dream market for landlords.

 

The performance of the commercial real estate market is certainly a telling sign as to the state of the economy. With job creation improving, it is likely that the strong performance of the commercial real estate market will extend to the residential real estate market in the next year.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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