NAR Reports Modest Growth in Commercial Real Estate

The National Association of REALTORS (NAR) Research Division released its Commercial Real Estate Outlook report for the second quarter of 2015 last week, along with a slick infographic summarizing the expectations for commercial real estate markets in 2015. The Commercial Real Estate Outlook forecasts critical statistics such as vacancy rates, absorption, and rent growth with data from fifty-four of the nation’s largest markets.

According to NAR Chief Economist Lawrence Yun, demand across all sectors of commercial real estate should see modest but increased demand as a result of a strong labor market and growing household formation. “The commercial real estate sector is on the path to recovery, but subpar economic growth, lack of financing available to small investors and the industry trend towards squeezing more employees into existing spaces will keep demand from meaningful acceleration,” Yun said in the NAR press release highlighting the report. “The exception is multifamily housing, which remains the best performer with vacancy rates under 4 percent in several markets in the Northeast and in California.”

The data, forecasts, and quotable’s are fantastic, but it was the infographic that caught my eye. The infographic summarizes a few important highlights from the report including changes in vacancy rates, multi-family rent growth, and “Potential Speed Bumps” to keep an eye on.

I am a big fan of good-looking infographics…especially since vacancy rates aren’t the most stimulating subject matter. Infographics are an effective tool for communicating data in a simple and practical format. On the Research Committee at NAR, we have encouraged infographics whenever practical…and the California Association of REALTORS has been using infographics for several years with One Cool Thing, a campaign featuring charts, infographics, top ten lists, and more. I look forward to sharing more infographics as they continue to grow in popularity!

Click here to read the NAR press release and Commercial Real Estate Outlook report

Click here to check out the California Association of REALTORS One Cool Thing archive of infographics

 

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