Commercial Real Estate Outlook

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NAR's latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Research shows that investment in commercial real estate in particular increased 17% between the fall of 2017 and the fall of 2018, and residential real estate also remains attractive to investors. So, if you’re asking yourself, “What is the best long-term investment?”, now appears to be as good a time as any to seriously explore investing in apartment communities and business spaces as your next career move.

Highlights:

  • Investment trends in LCRE maintained a broad-based approach, as sales in both gateway cities and secondary markets advanced.

  • Investment volume in the large cap space totaled $152.7 billion, a 17 percent jump from the same period in 2017.

  • Following a moderation in momentum during the second quarter, small cap markets rebounded in the third quarter of 2018, as investors remained focused on higher yields.

  • Commercial real estate sales in SCRE markets increased by 1.6 percent from the same quarter in 2017.

  • The shortage of available commercial inventory remained ranked as the top concern for REALTORS®, fueling continued increases in transaction prices.