This Thursday, Forbes Magazine published their Commercial Real Estate Forecast Update: 2013-2014. Similar to the data presented by NAI Alliance at the Builders Association of Northern Nevada (BANN) Forecast 2013 event in January, the data reflects modest growth projected for 2013 with some caveats. The northern Nevada market is basically falling in line with a nationwide trend - growth. Slow growth, but growth nonetheless. Encouraging information in a number of markets.
Here are some excerpts from the Forbes piece:
enjoyed 11 consecutive quarters of occupancy growth and eight straight quarters of rent increases
- Finding large contiguous Class A spaces in downtown areas can be difficult
- Starting to expand, with more new deliveries than in recent years
- Vacancy rates will not fall too far, nor will rents rise too fast
- Increased volume of rented space will help the large landlords improve their efficiency
- Seeing more absorption than construction
- Overall retail spending has only increased 4.4 percent in the past 12 months
- The positive side for property owners is the extremely low interest rate for commercial mortgages
- The recent stock market surge may shift some money away from real estate
- Light to moderate gains are likely
’s most recent survey of economic forecasters shows a 17 percent risk of recession
So there are a number of positive takeaways from the data delivered by Forbes, but the rule remains - cautious optimism. We, as both a local market and a nation, are climbing out, but there are many hurdles to clear. Fortunately the path is bright.
You can view the entire article from Forbes by clicking here.
In addition, you can view the presentations given by NAI Alliance executives at the BANN Forecast 2013 event on the NAI Alliance YouTube brand channel by clicking here.