According to the NAR, multifamily properties are performing the strongest in the commercial lending sector, but office, retail and industrial will see higher rents and lower vacancies in 2015.
Vacancies are still below 5 percent, after all. (Sacramento and Orange County, Calif., had the lowest multifamily vacancy rate at 2.2 percent.) That will help support projected rent increases of 4 percent this year and 3.9 percent in 2015.
“Low housing inventory and the sizable demand for rentals will continue to spur multifamily construction as well as keep rents rising above inflation through next year,” said Lawrence Yun, the NAR’s chief economist.
Office, retail and industrial real estate will all see declines in their vacancy rates, but they also have higher numbers to begin with. By the end of 2015, they’re expected to have rates of 15.7, 9.5 and 8.4 percent, respectively.
These other three types of commercial properties will also see higher average rent increases in 2015: 3.3 percent for offices, compared to 2.4 percent this year; 2.9 percent for industrial, compared to 2.4 percent in 2014; and 2.5 percent for retail, up from 2 percent this year.