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WASHINGTON, DC-From office properties to retail facilities, the commercial real estate market is headed for positive change. The National Association of Realtors has reported that economic growth and an upward trend in business confidence will help turnaround high vacancy rates across the board. The organization presented the forecast at its National Association of Realtors Midyear Legislative Meetings & Trade Expo. NAR relied on Property & Portfolio Research for the statistics.

“Durable goods orders have been trending up, manufacturers are hiring again and payroll data is on the rise,” NAR chief economist David Lereah says in a statement from the meeting. “Business spending will continue to grow and that will directly feed into a rising demand for commercial real estate space.” Office vacancies are expected to stabilize as the job market starts to rise from the ashes, and there will be a minimal increase in rents this year before the rates increase by 3.5% next year.

Consistent consumer spending will result in a 1.6% increase in retail property rent this year, and changes in absorption will lead to rent increases of .5% in the warehouse facility arena. As for multifamily properties, the onslaught of echo boomers going out on their own and a growing immigrant population will bring vacancy rates down from 7.1% to 6.8% and lead to a slim increase in rents.

And there is more good news. “The value of commercial real estate has been holding up,” Lereah tells GlobeSt.com. “The fundamentals are strong; it’s a good deal.”

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