Commercial fundamentals in REALTORS®’ markets continued gaining strength during the second quarter of 2016. Based on NAR’s Commercial Real Estate Market Trends report, leasing activity advanced.
With demand for commercial space rising, developers have taken note and ramped up construction. New commercial construction mirrored the broader economic slowdown, posting a 5.3 percent gain from the prior quarter. However, demand continues to outpace the supply pipeline, leading to rising occupancy.
Vacancy rates continued declining, ranging from a low of 5.0 percent for apartments to a high of 13.2 percent for hotel properties. Office vacancies declined 365 basis points year-over-year, to 12.3 percent. Industrial availability witnessed a yearly decrease of 95 basis points—to 9.8 percent. Retail vacancies slid 70 basis points on a yearly basis, to 11.8 percent. With declining vacancies, lease concessions declined 5.5 percent.
To access the latest Commercial Real Estate Market Trends report, visit: http://www.realtor.org/research-and-statistics/commercial-real-estate-market-survey.
Copyright NATIONAL ASSOCIATION OF REALTORS®. Reprinted with permission.