NEW YORK (September 27, 2021) – The National Association of Realtors® identified the top 10 commercial office markets as of the third quarter of 2021 in their monthly Commercial Market Insights report, released Monday. In alphabetical order, the markets are as follows:
- 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 recovery with positive net absorption and rising rents in the apartment, industrial and retail property markets as economic production returns to pre-pandemic levels. The housing and industrial sectors in particular have historically low vacancies, while retail is recovering more slowly as consumers return to brick-and-mortar shopping.
However, the office sector continues to struggle as absorption rates and rents have declined, and many occupied spaces are largely labor vacant. 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.
"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 overall 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 commercial real estate and business development professionals," said Charlie Oppler, President of NAR, a Realtor® of Franklin Lakes, N.J., and CEO of Prominent Properties Sotheby's International Realty. "Commercial real estate plays a critical role in stimulating the economy and revitalizing communities. Whether sales, property management, financing or development, C5 will help enable important investment and partnership opportunities."
Check out the latest Commercial Markets Insights report from NAR here: https://www.nar.realtor/commercial-market-insights/september-2021-commercial-market-insights.
The National Association of Realtors® is America's largest trade association and represents more than 1.5 million members who work in all aspects of the residential and commercial real estate industry.
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