Future bright for commercial, industrial real estate

Construction lull, global trade boost demand

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The commercial real estate markets are continuing to grow with record investment, with individual sectors in many areas seeing tighter vacancy rates and higher rents, according to the latest Commercial Real Estate Outlook of the National Association of Realtors. David Lereah, NAR's chief economist, said performance varies among the commercial sectors. "The office and industrial markets continue to shine, supported by job growth and trade, while the rental apartment sector is seeing healthy rent increases," he said. "The retail sector is essentially flat, but the hotel industry is doing better than at any time since 2001." James Marrelli, NAR vice president of commercial real estate, said there is a record flow of capital into commercial real estate. "We're setting another record this year for investment in commercial real estate," he said. "Institutional investors, pension funds and foreign investors have focused on commercial-grade properties to diversify portfolio assets, with ex...