America’s Top Commercial Property Markets of Q3 Revealed by NAR
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Monthly at the latest, according to the National Association of Realtors Insights into the commercial market report, these are the U.S. commercial real estate markets in Q3 2021 (in alphabetical order):
- Austin, Texas
- Boise, Idaho
- Chattanooga, Tennessee
- Daytona Beach, Florida
- Miami, Florida
- Myrtle Beach, South Carolina
- Omaha, Nebraska
- Palm Beach, Florida
- Provo, Utah
- San Antonio, Texas
Analyzing 390 commercial property markets, NAR noted a robust rebound with positive net absorption and rising rents in the apartment, industrial and retail property markets as economic production returns to pre-pandemic levels. In particular, the housing and industrial sectors have historically low vacancy rates, while retail is gradually recovering as consumers return to stationary shopping.
The office sector continues to struggle, however, as absorption rates and rents have declined, and many occupied spaces are largely unemployed. Positive indicators were found in small and medium-sized metropolitan areas, which are seeing an increase in office occupancy that exceeds most large cities and the national average.
Lawrence Yun
“Although the economy is steadily recovering, the office market is the only sector that is still lagging behind,” said NAR chief economist Lawrence Yun. “The flexibility to work from home seems to be the crucial shift in the new post-pandemic economy.
“Despite the general challenges, however, some local markets are bucking the trend of higher office occupancy and rising rents. A combination of high immigration and relatively lower business costs is driving these growth markets.”
NAR unveiled key office markets today at its first C5 summit in New York City. C5 – Commercial. Associate. Trade. Capital city. Community. – brings together commercial investors and influential industry leaders, including commercial brokers and developers, state and local Realtor® associations, business development agencies, government officials, REITs, and national and international investors.
“The C5 is the nation’s premier gathering of professionals in commercial real estate and economic development,” said NAR President Charlie Oppler. “Commercial real estate plays a vital role in stimulating the economy and revitalizing communities. Whether sales, property management, financing or development, C5 will help enable important investment and partnership opportunities. “