Commercial real estate continues uptrend

Falling vacancies, rising rents paint rosy picture

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The expanding economy is pulling commercial real estate along with it, creating strong demand for space, and institutional investors are returning to the market, according to a commercial market update and forecast from the National Association of Realtors. David Lereah, NAR's chief economist, said the market fundamentals are improving. "Commercial real estate vacancy rates are falling and rents are rising as the economy expands and jobs are created," he said. "Growth in the Gross Domestic Product is fairly strong and consumer spending remains healthy. Business spending is on the rebound, and the completion of new commercial buildings has shown positive growth over the last two years." Government spending is providing support to the commercial sector, increasing over 2 percent in the first quarter of the year. Strong corporate profits mean businesses are in the position to expand, wages are growing and 2 million jobs have been created in the last year. Imports and exports remain at ...