Sales and leasing activity are up in commercial real estate, according to the National Association of Realtors® May Commercial Real Estate Market Survey. Realtors® reported commercial business opportunities were 4 percent higher than the fourth quarter 2012.
Vacancies are declining in all four commercial sectors – residential, office, retail and industrial. This is good news for the market as it indicates a pickup in leasing activity. However, those strong fundamentals are encouraging landlords to provide fewer rent concessions; rental rates increased 1 percent compared with the previous quarter.
Where space requirements are concerned, tenant demand was strongest at 5,000 square feet and below. Forty-two percent of Realtors® reported clients opting for space in the range of 2,500 square feet. Rentals with 36-month and 60-month leases captured the bulk of the market.
- Stay Informed
How is the commercial market in your area? Talk to a Realtor® for insight into any trends they see the market. How do vacancy rates hold up in your area compared to the findings in NAR’s Commercial Real Estate Market Survey?