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.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).
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