Markets & Economy

NAR: Commercial real estate investment drops in Q1

Retail, multifamily sectors fare better than office, industrial

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Commercial real estate conditions are uneven across the country and vary notably in some areas, according to a commercial real estate update and forecast presented in Washington, D.C., this week at the National Association of Realtors Midyear Legislative Meetings & Trade Expo. NAR Chief Economist Lawrence Yun said that just like residential real estate, performance in the commercial sectors is greatly mixed across the country. "It's just as important to understand local market variations in commercial real estate as it is in the residential sector because local conditions can vary considerably," he said. "Commercial fundamentals are good, but investment has been hurt by the credit crunch -- investment in the commercial sectors decelerated in the first quarter after setting a record in 2007." During the first three quarters of 2007, commercial real estate investment was in excess of $100 billion per quarter. In the first quarter of 2008 it slowed to...