A recent report form Integra Realty Resources, a commercial real estate valuation/appraisal and consulting assignments for every property types stated, the continuous high US unemployment rate has tamp down economic growth. The commercial real estate market shows signs of development in 2010 but industries that are connected US unemployment rate remains constrained including the industrial, retail and office market.
Other commercial markets that do not have stronger ties with US unemployment rate such as lodging and multi-family sectors have experienced the largest growth in 2010, according to the Integra Realty Resources report, which is released on Monday, January 10, 2011.
The IRR report has also established that national vacancy rates in major business district in the United States rise to 14.6 percent in 2010 from 13.4 percent in 2009, while vacancy rates in uptown markets climbed to 17.1 percent from 15.5 percent during the same period.
According to Jeffrey Rogers, IRR’s president, the economic forecast shows the overall outlook for struggling markets are now improving, and predicted that the current economy of the country, more jobs should be added—slowly until the end of this year to improve the US unemployment rate, which will play a major and positive role in overall real estate market.
The multi-family and lodging markets improved this year because majority of tenants sought out high-end properties.
Until the current US unemployment rate is not addressed, development in the office, retail, and industrial sectors will not have further developments, but IRR anticipates a slight improvement on these markets this year.