Commercial market should continue growth

The commercial real estate market should see steady growth.

A slow, but steady growth pattern for commercial real estate is expected throughout the last part of the year, according to Fitch Ratings.

The firm's U.S. Structured Finance Snapshot showed that the office sector struggled significantly during the first half of the year, which may make some property management companies uneasy. In all, this section of the market had close to half of all loan defaults during the period. The theme may continue as the year goes on, but there are some positives in the market that should be on the horizon.

"Office properties will likely continue to see net operating income declines unless the property is in a core market such as New York," said Huxley Somerville, managing director for Fitch Ratings. "Multifamily and hotels, in contrast, will likely see average net operating income close in on historic peaks as 2012 comes to a close."

The office sector has the largest risk when it comes to commercial real estate, but the retail sector may not be far behind. This is due to a marked decline in total consumer spending.

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