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NAR: Commercial real estate is a "tenant's market"
August 31st, 2010 11:38am
The latest report by the National Association of Realtors says that while the commercial real estate market is beginning to show signs of stabilizing, it is still tilted towards the tenant.
The Society of Industrial and Office Realtors said that its index of the market rose 2.8 points to 41.0 in the year's second quarter. But that mark still fell well short of the score of 100 that stands for a balanced marketplace.
"Vacancy rates are beginning to level off in some sectors, but rent discounts and moderate levels of landlord concessions are widespread," said Lawrence Yun, the NAR's chief economist. "This is very much a tenant's market, which is quite favorable for businesses that are considering expansion. It's also encouraging that there is a modest improvement in the sentiment of commercial real estate practitioners."
Surveyed about their opinion on the market's potential for the future, 57 percent of respondents said that they expected improvement in the third quarter of the year.
The market for Houston properties has actually been one of the strongest in the country. According to a study by Keefe, Bruyette and Woods, Houston ranked in the top seven in five of the six commercial real estate categories, HousingWire reports.
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