Monday, September 07, 2009

Unhealthy US Commercial Real Estate

Wow, those green shoots are really sprouting.

The US National Association of Realtors has the following forecast:

“We now expect office vacancy rates to rise very sharply, surpassing 20 percent in 2010. Office rents will fall 7 percent in 2009 and further fall an additional 1 percent in 2010. Industrial and retail sectors will face deteriorating conditions as well. Only the multifamily sector looks to squeeze out positive rent growth, though at a slower rate of increase than in the past.”


JR said...

Perhaps you meant "National Association of Bloodsucking Vampires"?

Halfwise said...

JR you have to admit that for an association of realtors to say anything other than "the market looks good, this is a great time to buy/rent/sell" is pretty unusual, and a pessimistic assessment was a real surprise to me.

The internet is diminishing the value of middle-men and brokers, realtors included. I am ok with that.

Halfwise said...

By the way, interesting take by a Realtor, on the link you provided. Thanks for that!

JR said...

Now that you mention it, that is a very uncharacteristically candid forecast.

JR said...

Which you could say is consistent with the "bloodsucking vampire" NAR's seeking government 'stimulous' money for its industry.