- Posted at 12:14, November 09, 2013 Updated: 1:35, Nov 09
- By Russ Bleemer
The National Association of Realtors Chief Economist Lawrence Yun told a San Francisco real estate conference Friday that the commercial real estate market’s transaction volume increased 27% from year-ago levels and prices “display solid gains.”
The NAR is a one million member trade association of commercial and residential realtors based in Chicago.
Still, the recovery is uneven, he said. Small commercial properties under $1 million are “moving incrementally,” while “expensive properties”—defined at the NAR’s conference as properties over $2 million, “are doing much better.”
“What we’re seeing,” said Yun, according to an NAR press release, “is two very distinct markets within the commercial sector.”
He reported that apartments are performing better than other commercial sectors, with prices increasing and vacancy rates decreasing. Along with New York, he said vacancy rates are “especially low” in San Diego.
Meantime, the release says, “[o]ffice vacancy rates are also decreasing, and rents have recently turned the corner and are positive.” Despite a better employment picture, Yun says that office space is not increasing, and “predicts this trend can’t continue,” the NAR release says. New York and Washington, D.C., have the lowest office vacancy rates.
You can see the NAR's account of Yun's speech here, and find links to the conference, which runs through this weekend. On the agenda today: Hillary Clinton, in a paid appearance.