Commercial Fundamentals Will Continue Slow Climb

Yun notes that US commercial real estate has been steady despite global and domestic headwinds buffeting the economy.

WASHINGTON, DC—Each of the four major property types except multifamily is expected to see modest vacancy declines over the next year, the National Association of Realtors said Monday in its latest quarterly commercial real estate forecast. Across the board, US commercial real estate has been steady despite global and domestic headwinds buffeting the economy, says Lawrence Yun, NAR’s chief economist.

“Ongoing overseas weakness and the slowdown in business investment despite historically low interest rates held second-quarter growth at a tepid and disappointing pace,” Yun says. “Only steady job creation, solid consumer spending and residential construction—albeit not enough of it—kept the economy afloat during the first half of the year.”