Commercial Vacancies

Commercial Vacancies to Peak Near Early 2011

Vacancy rates continue to rise in most commercial sectors and are not expected to level out in most markets until the end of this year or early 2011, NAR says. The bright spot is the multifamily sector, which can expect increased demand as the economy creates jobs and new households are formed, likely in the second half of this year. "The office, warehouse, and retail sectors continue to experience the delayed effects of the recession," says NAR Chief Economist Lawrence Yun. "These sectors should see gradual improvement after jobs pick up and create additional demand for space, meaning a broader improvement in commercial real estate is likely in 2011."