All of the major commercial real estate sectors are projecting a healthy near-term future, according to new data released by the National Association of Realtors (NAR).
NAR forecasts vacancy rates in the office sector to fall from 16.3% in the second quarter to 16% in the second quarter of 2013. Office rents are forecast to increase 2% this year and 2.5% next year. Net absorption of office space in the U.S., which includes the leasing of new space coming on the market as well as space in existing properties, is forecast at 24.7 million square feet this year and 48 million square feet next year.
NAR predicts industrial vacancy rates to decline from 11% in the current quarter to 10.7% in the second quarter of 2013. Annual industrial rent is expected to rise 1.6% this year and 2.4% next year. Net absorption of industrial space nationally is seen at 44.1 million square feet this year and 62.4 million next year.
Retail vacancy rates are forecast to decline from 11.3% in the second quarter to 10.7% in the second quarter of 2013. Average retail rent is forecast to rise 0.8% this year and 1.3% in 2013. Net absorption of retail space is projected at 8 million square feet this year and 21.9 million in 2013.
In the multifamily sector, vacancy rates are forecast to drop from 4.5% in the second quarter to 4.3% in the second quarter of 2013. After rising 2.2% last year, average apartment rent is expected to increase 4% this year and another 4.1% next year.