Moody’s reports that the commercial real estate market is improving in the United States during the first quarter of FY2011, with apartment units showing the most improvement.
Commercial real estate generally is divided into five main categories: Office, industrial, retail, hospitality and apartments, sometimes referred to as the multifamily sector. Moody’s ranks markets’ health on a scale of zero to 100, with the highest score representing a stronger market. The U.S. apartment market registered a score of 88, while the overall commercial real estate market ranking for the nation increased two points to 67.
Market conditions improved in the first quarter of 2011 and Moody’s projects that the commercial real estate sector will continue on a positive trend. The report notes that commercial space is being leased at a rate that could exceed the rate of increase in supply. The projection that this gap could be closed is welcome news in the industry.
- Charles Edwards frequently blogs on Canadian REIT topics
