Commercial market conditions jump in Q4

The commercial market improved as the year came to an end.

The commercial real estate market situation continued to look up for property management companies to end 2012, as many indicators improved.

Overall, total mortgage originations for commercial and multifamily properties rose more than 45 percent during the fourth quarter compared to the previous quarter's level, according to the Mortgage Bankers Association. This also increased by the same level compared to the same quarter in 2011.

Another benefit to the market was the continued growth of the Gross Domestic Product, which expanded by 0.4 percent during the final three months of the year, MBA's Commercial/Multifamily Quarterly Data Book for Q4 2012 explained.

Vacancy rates continued to decline for multiple sectors during the month. The office market fell to 17.1 percent, while the retail sector dropped to 10.7 percent, the report explained. The multifamily sector also experienced a decline, as its figure fell to 4.5 percent.

While the market improved during the past several months, this is something that may pick up for the rest of this year. A report from CIT Real Estate Finance noted that more private equity firms may take a more active role in the investment market this year, which is a change from the more common pension funds and insurance companies that filled the market in the past few years.

Share
Disclaimer: All data and information provided on this site is for informational purposes only. Zoliath.com makes no representations as to accuracy, completeness, correctness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, opinions or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis.