Job growth, trade drive commercial real estate

Office sector posts stellar growth

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The impact of hurricanes is affecting many local commercial real estate markets, but job creation and increased trade are shaping the overall market, according to the National Association of Realtors Commercial Real Estate Spotlight. David Lereah, NAR's chief economist, said it takes time for commercial real estate to respond to changes in the overall economy. "There is a well-known lag effect in commercial real estate, with a strong rise in jobs over the last two years currently bearing fruit in terms of higher demand for commercial space, especially in the office sector," he said. "In addition, increases in trade are benefiting industrial properties such as warehouse and distribution facilities." NAR President Thomas M. Stevens from Vienna, Va., explained other factors at play in commercial real estate sectors. "People displaced by hurricanes are having a large impact on the apartment market across many areas of the South," said Stevens, senior vice president of NRT Inc. "Consumer ...