Commercial real estate leasing patterns are showing steady but modest growth, according to the National Association of Realtors® quarterly commercial real estate forecast.
Lawrence Yun, NAR chief economist, projects only modest changes in the coming year. "Jobs are the key driver for commercial real estate, and the accumulation of 7 million net new jobs from the low point a few years ago is steadily showing up as demand for leasing and purchases of properties," he said. "But the difficulty of accessing loans remains a hindrance to a faster recovery."
The gross domestic product rose from 2.5 percent in the second quarter to 2.9 percent in the third quarter. NAR's recent Commercial Real Estate Quarterly Market Survey shows leasing activity rose 2 percent in the third quarter from the second quarter, and higher sales levels than a year ago.
Read more...Modest Growth Seen in Commercial Real Estate Markets