Commercial real estate could experience increased demand

Commercial real estate in Houston could rise jobs with more jobs.A report from the National Association of Realtors relayed that one result of the recent increase in jobs nationally could mean more demand for commercial real estate.”Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year,” said Lawrence Yun, NAR's chief economist.Yun further relayed that, because of the lack of new inventory recently, this increased demand will also affect the vacancy rate across the country. Markets can then begin to stabilize. NAR estimated that, from the second quarter of 2011 to the same period in 2012, vacancy rates will fall 1 percent in offices, 0.9 percent in industrial real estate, 0.5 percent in retail and 1.1 percent in multi-family rentals.In Houston, commercial real estate has seen a recent increase, as more offices and retailers are interested in the local market. Minneapolis and Dallas have also experienced the same increases that the Houston real estate market for commercial properties has.Houston's increased success in the sector could also be attributed to its greater employment numbers. In Houston, the region added more than 50,000 jobs in February, according to the Texas Workforce Commission.?Courtesy of 2M Realty News

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