When looking ahead at the future of the commercial real estate market, there are a lot of factors to take into account—economic growth, employment numbers and demand, to name a few. Taking these and other factors into account, a report by the National Association of REALTORS® (along with Situs Real Estate Research Corporation and Deloitte) predicts 2016 will be a year of moderate growth for commercial real estate. Vacancies are expected to keep dropping except for apartments (due to more buildings coming into the market) and rents are expected to rise, as demand is exceeding supply and there is likely to be limited new construction. According to NAR Chief Economist Lawrence Yun, “While supply shortages will weigh on housing affordability and push home prices and rents higher, the housing sector will keep the U.S. economy afloat and lead the residential investment component of GDP growth by up to 10 percent this year.”
Review the Expectations & Market Realities in Real Estate 2016—Navigating through the Crosscurrents report to see what industry experts project for commercial real estate this year. Talk to a REALTOR® in your market who practices commercial real estate to get their input and expectations for 2016.