CRE market may improve even further this year, NAR finds

The CRE sector will continue to thrive this year, according to NAR.

Commercial banks, brokers and other industry members may want to gear up for even more business related to CRE transactions, as 2013 has been cited by a major trade organization as a year in which the sector will see further substantial growth.

According to its Commercial Real Estate Outlook for the year ending in the first quarter of 2014, the National Association of Realtors noted it projects continued ameliorations in the CRE segment, largely due to improving jobs figures and positive national economic movement.

"Rent increases have been higher in multifamily housing where supply is not matching strong demand, thereby allowing landlords to raise rents at faster rates," said NAR chief economist Lawrence Yun. "Overall commercial real estate leasing activity continued to grow in most markets during the closing months of 2012, which is modestly lowering vacancy rates in all of the commercial sectors early this year."

Rents will rise mildly while vacancy rates will dip further for the multifamily, industrial, retail and office sectors, the forecast indicates. Washington, D.C. and New York City are expected to see solid figures in 2013 for their respective office markets. Meanwhile, the industrial markets in Los Angeles and Orange County are predicted to experience vacancy rates near 3.6 percent.

The office market may prove to be the best of all CRE facets this year. Jones Lange LaSalle states the real estate segment has seen occupancy and rents grow markedly in the past 11 and eight quarters, respectively.

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