Sunday , 22 October 2017
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Prediction: CRE to Improve in 2012

ANAHEIM, Calif. — A majority of the commercial real estate sectors are still experiencing rising
absorption and little improvement in rents, according to Lawrence Yun, chief economist for the National Association of Realtors. The multifamily apartment sector remains the strongest with net absorption rates increasing and vacancies decreasing, causing rents to rise across the country, said Yun, who was speaking at the annual convention of the National Association of Realtors. Yun said  rising foreclosures and short sales are driving many individuals into renting and that the lack of available credit to qualified home buyers is keeping many in the rental market. However, high, increasing rents combined with record-low interest rates are enticing some individuals into the housing market.

Yun predicted moderate improvements in commercial real estate markets and the broad economy because job growth and other economic factors are slowly improving. He said that despite the stock market’s volatility, it is performing higher than it was in 2008, making it easier for companies to raise capital and for consumers to gain wealth.

Yun doesn’t anticipate a second economic recession in the near term, because of
the strong cash potential that businesses could release into economy, which
would help the country avoid a second recession. He said that international
trade is expanding and that international home buyers are taking advantage of
the weaker dollar and investing in commercial and residential real estate.

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