Commercial Real Estate Outlook, 2nd Quarter

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NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets.


  • Commercial fundamentals in large cap markets echoed the economic slowdown during the quarter.
  • Demand for office and apartment properties remained steady, while industrial and retail found a softening in absorption.
  • Vacancy rates experienced slight increases, but rent growth remained solid.
  • Commercial fundamentals in small cap markets remained positive during the first quarter of 2017, but the pace of growth moderated.
  • Leasing volume advanced 2.3 percent from the prior quarter.
  • New construction increased by 2.3 percent from the prior quarter, the slowest pace since the first quarter of 2015.