The National Association of Realtors has said that a commercial property recovery in the US is unlikely to happen soon.
The US commercial property market is still suffering from the effects of the recession, which continued to affect the sector in the fourth quarter of 2009, according to the country's National Association of Realtors (NAR).
Lawrence Yun, NAR chief economist, predicted that
commercial mortgage holders in the US may need to make rent concessions as vacancy rates continue in an upward direction this year.
However, he forecast a brighter picture for 2011 as US employment picks up, with a resultant rise in demand for
commercial loans for office and warehouse space.
"At the same time, improved consumer confidence would help sustain the retail sector and encourage more people to enter the rental market," added Mr Yun.
The default rate for commercial mortgages held by US banks more than doubled in the fourth quarter of 2009 and may reach as high as 5.4 per cent by the end of 2011, Real Capital Analytics predicted recently.
Latest News 
