“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,” said Lawrence Yun, NAR chief economist. “But the difficulty of accessing loans remains a hindrance to a faster recovery.”
Sales of commercial properties costing less than $2.5 million rose 11% on a year-over-year basis in the third quarter, and prices on large properties were also up, rising 9% from the third quarter of 2012.
Based on current trends, vacancy rates in the office sector are projected to decline from 15.6% in the fourth quarter to 15.4% in the fourth quarter of 2014, while industrial vacancy rates are likely to drop from 9.2% in the fourth quarter to 8.6% next year, NAR reported.
Multifamily vacancy rates, however, are projected to edge up as new construction adds to inventory, from 3.9% in the fourth quarter of this year to 4.0% in the fourth quarter of 2014.
Commercial real estate is seeing modest but steady growth, but tight credit standards continue to slow recovery, according to data released Friday by the National Association of Realtors.