LAS VEGAS (FOX5) -- The National Association of Realtors has listed Las Vegas as a top 10 commercial real estate market in the U.S.
The association lists Las Vegas as well as Phoenix, Seattle, Nashville and Salt Lake City among the top 10. The list is part of the association's first-ever commercial real estate forecast summit released on Wednesday.
Chief Economist Lawrence Yun predicts that the commercial real estate market will improve in 2021 as the U.S. economy reopens.
“A recovering economy and the near certain job growth will steadily lead to the absorption of commercial properties,” Yun said. “The apartment rentals market could once again experience very low vacancy rates by year’s end.”
NAR selected the top 10 markets after considering 25 indicators on an area’s economic, demographic, housing and commercial market conditions in the multifamily, office, industrial, retail and hotel property sectors. Some of the indicators included GDP growth, unemployment rate, median household income, consumer spending, number of business openings, population growth, homeownership rate, rental vacancy rate, building permits and apartment rent, among other variables.
Yun says affordable markets are likely to outperform less affordable markets, as they will attract new residents.
“The top commercial real estate markets that are expected to outperform the rest of the nation are generally affordable and able to draw new residents with a greater flexibility to work from home,” said Yun. “These growing markets also offer much lower office and retail rents and are, therefore, able to attract new and expanding businesses.”