Commercial Metro Market Reports Q3 2024

The National Association of REALTORS® (NAR) released its Q3 2024 Commercial Real Estate Market Insights, highlighting key trends across various sectors:

🏢 Office Sector

• Vacancy Rates: Remained at a record-high 13.8% in Q2 2024, though the pace of increase has slowed.

• Net Absorption: Improved to -42 million square feet, indicating a slight uptick in demand.

• Leasing Activity: Continues to be subdued, with activity 63% below pre-pandemic levels. National Association of REALTORS®

🛍️ Retail Sector

• Vacancy Rates: Held steady at approximately 4%, the lowest among all sectors.

• Demand: Net absorption slowed, with 39 million square feet absorbed over the past 12 months, down from 57 million square feet the previous year. National Association of REALTORS®

🏭 Industrial Sector

• Fundamentals: Softened in Q2 2024, with net absorption levels not seen since 2012.

• Net Absorption: Declined by 68% compared to the previous year. National Association of REALTORS®

🏘️ Multifamily Sector

• Demand: Surged due to high mortgage rates impacting housing affordability.

• Net Absorption: Increased to 260,890 units in Q2 2024, 2.4 times higher than a year ago and 44% above pre-pandemic levels.

• Vacancy Rates: Remained steady due to a record number of new units entering the market. National Association of REALTORS®

📊 Economic Overview

• GDP Growth: The U.S. economy grew at an annualized rate of 2.8% in Q2 2024, up from 1.4% in Q1.

• Job Market: Added over 200,000 jobs in June 2024, with the unemployment rate rising to 4.1%.

• Inflation: Eased to 3.0% in June 2024, the lowest since March 2021. National Association of REALTORS®

For a more detailed analysis, you can access the full report here: July 2024 Commercial Real Estate Market Insights.

COMMERCIAL REAL ESTATE REPORT Q3 2024