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Cover of the Q3 2021 Commercial Real Estate Metro Market Report

Commercial Metro Market Reports Q3 2021

The Commercial Real Estate Metro Market Reports provide information on the multifamily, office, industrial, retail, and hotel property markets in 390 metropolitan areas or portions of these areas. The reports provide 46 indicators (if all available) on the economic and demographic conditions of a metro area (GDP growth, employment, unemployment, wage growth, domestic migration, population growth) and commercial market indicators on net absorption, vacancy rates, rent, leasing, deliveries, ongoing construction, inventory, total sales volume, transaction price, and cap rates based on CoStar® market data.

NAR aggregated the information across the property markets into a Commercial Real Estate Market Conditions Index to assess the area’s overall conditions relative to national conditions. The index is calculated as the ratio of the number of variables where a metro area’s condition is stronger compared to nationally to the total number of indicators available in a metro area (46 if all are available). An index above 50 means market conditions are stronger than nationally, and an index below 50 means local market conditions are weaker than nationally.

How to Read These Reports

All 390 metro market reports are included in this report. To quickly find your metro market, please use the bookmark function in your PDF reader to navigate directly to the metro market that interests you. The list is in alphabetical order.

Summary

In 2021 Q3, the top 11 markets with the highest indices included four metro areas in Florida, three in South Carolina, two in North Carolina, Texas, and Utah (only among markets that had at least 40 out of 46 indicators).

  • Fort Myers, FL
  • Palm Beach, FL
  • Orlando, FL
  • Pensacola, FL
  • Charleston, SC
  • Hilton Head Island, SC
  • Myrtle Beach, SC
  • Asheville, NC
  • Burlington, NC
  • Austin, TX
  • Provo, UT

25 indicators used to create the NAR Commercial Real Estate Market Index

  1. Year-over-year percent change in non-farm employment is higher than the U.S. rate
  2. Unemployment rate is lower than the U.S. rate
  3. Year-over-year percent change in average weekly wages is higher than the U.S. rate
  4. GDP growth is higher than the U.S. rate
  5. Year-over-year percent change is higher than the U.S. rate
  6. Population growth is higher than the U.S. rate
  7. Net domestic migration is positive
  8. Year-over-year percent change in apartment rent is higher than the U.S. rate
  9. Rent to income share is higher than the U.S. rate (means there's need for more development)
  10. Multifamily rental vacancy rate is lower than the U.S. rate
  11. Year-over-year percent change in apartment rent is higher than the U.S. rate
  12. Year-over-year percent change in 12-month starts for 5-unit properties is higher than the U.S. rate
  13. Ratio of change in employment to 5-unit housing starts in past 12 months is higher than the U.S. ratio
  14. Year-over-year percent change in new leasing in square feet for office space is higher than nationally
  15. Net absorption of office space is positive
  16. Office vacancy rate is lower than the U.S. rate
  17. Year-over-year percent change in office asking rent is higher than the U.S. rate
  18. Construction of office space as a share of current inventory is higher than U.S. rate
  19. Year-over-year percent change in new leasing in square feet for industrial space is higher than the U.S. rate
  20. Net absorption of industrial space is positive
  21. Year-over-year percent change in industrial asking rent is higher than the U.S. rate
  22. Under construction of industrial space as a share of current inventory is higher than U.S. rate
  23. Year-over-year percent change in retail trade jobs is higher than the U.S. rate
  24. Year-over-year percent change in leisure and hospitality jobs is higher than the U.S. rate
  25. Year-over-year percent change in leisure and hospitality businesses open relative to Jan 2020 is higher than the U.S. rate

For information about this report, email data@nar.realtor.

NAR also creates Local Market Reports on the state of the housing market.

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