NAR: No commercial real estate recovery until next year

The National Association of Realtors expects higher commercial real estate vacancy rates and falling rents throughout 2010, and notes virtually no new development this year. While forecasting improvement in 2011, it says commercial real estate almost always lags an economic recovery. “Because of the lingering impact from the deep recession over the past two years, vacancy rates will trend higher and many commercial property owners will need to make rent concessions,” says NAR chief economist Lawrence Yun. “With the job market expected to turn for the better later this year, we’ll see rising demand for office and warehouse space, but that’s not likely before 2011.”

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