Commercial real estate expansion stable for foreseeable future, study finds

Commercial real estate markets were strong at the mid-year point and are seeing an expansion that does not seem to be ending anytime soon, according to a new report by Nareit.

The research analyzed the growth and stability of apartment, office and industrial markets, including rent growth and vacancy rates, in second quarter 2019.

Apartment markets experienced robust growth, as is typical of this sector in the spring quarter due to strong seasonal demand for apartments. This market saw the second-strongest net absorption on record and exceeded the completion of 50,000 units over the past four quarters.

Office markets rebounded following weak performance in the first quarter, and reported the largest growth demand in three years, with a 23.7 million-square-foot increase in lease space.

Retail and industrial markets showed softening midyear, with net absorption falling short of completions. The quarter also saw the lowest new supply in seven years at 8 mill