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NAR Sees Favorable Outlook for CRE Occupancies
Following last year’s historic shifts in the economy, experts convened for the National Association of Realtors’ Commercial Economic Issues and Trends Forum projected a favorable outlook for the commercial real estate market in the coming year.
NAR chief economist Lawrence Yun said considerable capital will be pumped into the economy in the second quarter, with consumers eager to tap into a year’s worth of savings and unspent stimulus funds.
“Economic expansion and the jobs recovery will lead to rises in occupancy across all commercial real estate property types,” said Yun. “However, overall consumer price inflation is expected to increase 3% by the end of 2021 and likely will stay stubbornly high through next year, which will increase interest rates to 3.5%.”
There will be winners this year, including hotels, restaurants, theaters and other entertainment and hospitality sectors, along with apartments. However, NAR expects elevated office vacancies through 2022.
- ◦Economy
