breaking news
Healthy Food Factory Commissary Commercial Kitchen in Boca Raton, OUR KITCHENS ARE AVAILABLE 24/7/365 - Call (561) 394-7466 - Healthy Food Factory Commissary Commercial Kitchen in Boca Raton, OUR KITCHENS ARE AVAILABLE 24/7/365 - Call (561) 394-7466
Sign up for Newsletter
Email:
Florida_Panthers_Single_Game_Tickets_DIGITAL_8_2_18_CHILL_300x250.jpg
Century_21_Stuart_Goodwin.jpg
SFWW_236X150_WEB_AD_HAPPY_HERALD.jpg
Healthy_Food_Factory.jpg
South_Flo_Gutter_Services.jpg
Superios_Tint.png
DirectFreight.jpg
Open_house_Interior.jpg
A_H_Automotive.jpg
Dos_Amigos.jpg
Storm_Depot.jpg
Perfectly_Imperfect.jpg
Hemp_Factory.jpg
CBD_Docs.jpg
Bicycle_Spot.jpg
Allure_Massage.jpg
PG EXPRESS_1.jpg
Nomad_banner.jpg
Ace_Hardware.jpg
FinsFurs_Feathers.jpg
Ace_Hardware_rental.jpg
rss.jpg

 

 

 

 

 

 

 
Home / Articles / Real Estate / Happy Herald Realty /  Commercial Real Estate News
. . . . . . .
Monday, November 5,2012

Commercial Real Estate News

 
Underlying fundamentals continue to support all commercial real estate sectors, but a slowdown in job creation and ongoing tight lending availability has tempered growth in some areas, according to the National Association of Realtors. There are mixed results among the commercial sectors. Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector. Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally are down, trade has been robust with India, China and other Asian nations, along with Brazil, Mexico and our strongest trading partner – Canada.

 

Although still positive, dampened demand is slightly moderating rent growth except for the multifamily market. Sharply higher demand for apartments is causing rents to rise at faster rates. A return to normal household formation will mean even lower vacancy rates and higher rents in the future. The current commercial real estate cycle has been driven by shifts in demand without an oversupply of new construction.

The difficulty small businesses have in getting commercial real estate loans for leasing or purchase is keeping a lid on demand. Multifamily is the only commercial sector with a notable growth in new space, with some lending provided through government loans. Except for multifamily, vacancy rates remain above historic averages seen since 1999. Over that timeframe the typical vacancy rate has been 14.4 percent for the office market, 10.1 percent in industrial, 8.1 percent for retail and 5.8 percent in multifamily. Vacancy rates are marginally declining and rents are modestly rising in all of the sectors, but significant changes in the outlook are unlikely before the end of the year. Many corporate decisions on spending and job hiring are on hold given uncertainty over the upcoming elections, whether Congress will effectively avoid a “fiscal cliff,” and unsettled issues such as health care and banking/financial regulations.

Overall companies hold plentiful cash reserves, but they are hesitant to hire without clarity over how these outstanding issues will impact the bottom line. Commercial Real Estate gains could be thwarted if lending from small and community banks dry up from excessive regulatory compliance costs, and if international big-bank capital rules are applied to smaller lending institutions.n

 

  • Currently 3.5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
 
 
Close
Close
Close