Commercial real estate market improving at snail's pace

Real estate data from CBRE Econometric Advisors indicates that the commercial marketplace was a mixed bag of both positive and negative news during the first quarter.

Real estate data from CBRE Econometric Advisors indicates that the commercial marketplace was a mixed bag of both positive and negative news during the first quarter.

According to analysts at the firm, the vacancy rate of commercial real estate remained relatively unchanged from the previous three-month period, while the national industrial availability rate improved to 13.4 percent. 

"The most important economic news in Q1 2012 was the pick up in hiring, but so far we have only seen strong improvement in the multifamily sector," said CBRE-EA managing director Jon Southard. "For property types with longer leases, the employment gains served mostly to fill in shadow vacancy - space that was previously leased but not used."

Meanwhile, the report noted that retail availability during the third quarter also remained relatively unchanged at 13.1 percent, while apartment demand surged bringing the sector's vacancy rate to just 5.1 percent.
  
As gains in the commercial real estate sector continue to move at a slow pace, experts say that this slow speed of recovery will be maintained until the job market reaches the level it was at prior to the recession.



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