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NAR PREDICTS OFFICE, WAREHOUSE, RETAIL AND MULTIFAMILY MARKETS TO IMPROVE THROUGH 2005
| The office, warehouse, retail and multifamily real estate markets can expect overall improvement through 2005, according to a recent NAR report. "The commercial real estate market can generally expect absorption of space to rise and vacancy rates to decline over the next two years," said NAR Chief Economist David Lereah. "The improving economy means there will be more job creation and a greater need for space, while a growing population will support multifamily housing." Multifamily housing is forecast to experience a net absorption of 164,300 units next year, up from 122 million anticipated in 2003. The average vacancy rate is expected to drop to 6.6 percent in 2004 from 7.1 percent this year, with average rent expected to rise 2.1 percent in 2004 and 3.0 percent in 2005 after declining 0.8 percent this year. |