NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets.
- NAR forecasts economic output to expand at a stronger pace of 3.0 percent in 2018.
- With economic output and employment trends continuing on an expansionary path, commercial fundamentals are expected to exhibit solid demand and increasing cash flows.
- Vacancy rates will likely provide mixed results, with multifamily undergoing growing availability from an expanding supply pipeline.
- Office and retail properties will likely see vacancies move sideways, while industrial spaces will find rent growth advancing at a steady pace.
- For commercial investments, the trends have already shown in pricing. Cap rates seem to have found a floor, and for some property types, have already begun to turn upward.