Blog - "MULTI-FAMILY" The Bright Spot for Commercial Real Estate.

"MULTI-FAMILY" The Bright Spot for Commercial Real Estate.

Posted by Tom Whatley, Associate Broker, Steinborn TCN Commercial Real Estate.  Contact Tom:  tom@steinborn.com  

Lawrence Yun, NAR chief economist, said there is one bright spot in commercial real estate. "The multifamily sector can expect increased demand as the economy creates jobs and new households are formed, likely in the second half of this year," he said. 

Multifamily Market
The apartment rental market - multifamily housing - is expected to benefit from an improving economy and job market. Multifamily vacancy rates are forecast to decline from 7.3 percent in the first quarter of this year to 6.3 percent in the first quarter of 2011.

With recent additions to supply, average rent is likely to slip 1.5 percent this year, and then rise 1.2 percent in 2011. Multifamily net absorption should be 145,700 units in 59 tracked metro areas this year, and another 214,500 in 2011.