Slowing Job Creation Impacts CRE Recovery
A slowdown in job creation, along with elusive financing, affected most commercial real estate sectors in 2Q12, according to the National Association of Realtors’ latest commercial real estate forecast. “Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector,” said Lawrence Yun, NAR’s chief economist. “Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally are down, trade has been robust with India, China, and other Asian nations, along with Brazil, Mexico, and our strongest trading partner — Canada.” Dampened demand is moderating rent growth across the office, industrial, and retail sectors. Multifamily is the only sector currently seeing strong rent growth and development activity.