According to the National Association
of Realtors, rent growth is healthy and vacancy rates are low in most commercial real estate markets, as the sector continues
to benefit from a fundamentally sound economy.
A record
$257 billion was invested in commercial real estate in the first seven months of 2007, a marked increase over the $147.6 billion
posted during the same period in 2006. Commercial real estate investment responds to job creation and economic growth, which
have been fairly strong over the past two years, creating a need for additional commercial space.
In the first seven months of this year, multi-family transactions totaled $46.3 billion, up 10%
over the $41.5 billion invested in same period in 2006. Retail transactions of $37.4 billion easily eclipsed the $22.3 billion
posted in this sector in the same period in 2006.
Office building transaction volume
was $147 billion during the first seven months of 2007. It is 53% higher than the same period in 2006. In the industrial market,
transaction volume in the first seven months of this year was $26.8 billion, up 13% from the same period in 2006. While the
main driver of demand in this sector continues to be the need for warehouse and distribution space, the rebirth of the technology
sector is fueling demand for flex space.
