Recovery of Commercial Property Fueled by Apartments: Mortgages – Bloomberg

Positive news…

Apartment vacancy rates, now at a decade-low of 5.2 percent, never fell below 8 percent, even during the lowest point of the commercial property rout, according to data from Reis Inc. The office vacancy rate was 17.3 percent in the fourth quarter, while vacancies at shopping centers average 11 percent in the fourth quarter, unchanged from the previous three quarters.

“It’s a lot easier to hang your hat on something that’s experiencing good fundamentals where values are being supported than if somebody handed you a retail building that sits 60 or 70 percent occupied,” said Ryan Severino, senior economist at Reis.

via Recovery of Commercial Property Fueled by Apartments: Mortgages – Bloomberg.

2 thoughts on “Recovery of Commercial Property Fueled by Apartments: Mortgages – Bloomberg”

  1. Perpetual optimism is really a force multiplier.
    For several people, the weekly paycheck is ‘take-home pay’ because house is the only place they could afford to go along with it.

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