Commercial real estate vacancy rates will remain high and rents continue low throughout 2010, with virtually no new development this year, according to the National Assn. of Realtors (NAR).
While forecasting improvement in 2011, the group says commercial real estate almost always lags an economic recovery.
NAR cites a survey of commercial real estate experts in 700 markets by the Society of Industrial and Office Realtors that finds nearly nine in 10 report new commercial development is virtually nonexistent in their market areas, and rent concessions were reported almost everywhere.
NAR expects commercial vacancy rates to remain elevated, with office vacancies rising from 16.3 percent at the end of 2009 to 17.6 percent by the end of 2010. Office rents will drop 7.2 percent this year, following a 12.7 percent decline last year, it says.
It sees similar trends for the industrial and retail real estate markets.
