Commercial renter demands shifted this past week, with an increased focus toward more affordable and suburban class B/C apartments.
The latest Commercial Weekly report from the National Association of REALTORS® (NAR) found that overall apartment demand in the commercial sector skyrocketed during the pandemic and reached a decade-high level in the third quarter of 2021.
– Vacancy rate down to a decade low of 4.5%
– Asking rent increased significantly to 10.5%
– 94% of 183 metro areas experienced double-digit price growth for median single-family existing-home sales
– Owning is unaffordable compared to renting in the Western half of the country
– Class A is still accounting for a larger portion of net new absorption, but they are still down to 48%, while Class B increased to 37% since the pandemic
– The New York-Newark-Jersey City metro has the most units under construction (59,013 units), followed by Washington D.C. (30,384), Dallas (26,928), Los Angeles (26,161), Phoenix (22,307), Seattle (21,044) and Houston (20,277)
For more information, please visit www.nar.realtor.