Commercial real estate recovering at a slower pace

Positive underlying fundamentals continue to support all of the major commercial real estate sectors, but a slowdown in job creation and ongoing tight loan availability has tempered growth in some areas, according to the National Association of Realtors quarterly commercial real estate forecast. 

Lawrence Yun, NAR chief economist, said there are mixed results among the commercial sectors.  “Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector,” he said.  “Industrial and warehouse space is holding on better because imports and exports have advanced.  While exports to Europe generally are down, trade has been robust with India, China and other Asian nations, along with Brazil, Mexico and our strongest trading partner – Canada.”