Commercial Real Estate To Continue Its ‘Upward Trajectory,’ Says NAR

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Commercial real estate’s growth isn’t over yet—the National Association of Realtors says the industry has nowhere to go but up.

Growth is expected to be particularly strong in America’s smaller cities, where inventories haven’t become tight enough to seriously drive up prices, the NAR reports. Overall office vacancy rates are forecast to drop 1.5% to 10.4% over the next year thanks to strong employment and the corresponding need for space.

The same isn’t true for multifamily—a vast amount of new inventory is slotted to hit the market and vacancy rates are expected to grow 0.2% and settle at 6.1%. When it comes to prices, NAR Chief Economist Lawrence Yun says current high prices should cool off over the next few months while credit standards tighten. [NAR]

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