Dive Brief:
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Demand for office buildings and apartments will push the commercial real estate industry into “one of its better years” in 2015, industry analysts said.
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The Scotsman Guide, a resource for mortgage originators, quoted four industry analysts who said multifamily will continue to outperform other segments of the commercial sector through 2016 as investors favor apartment projects.
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In addition, demand for office buildings, which started to rebound last year after a prolonged struggle, will respond to healthy job growth and the creation of more professional and management positions, the analysts said.
Dive Insight:
The recovery in the multifamily and office sectors has been inconsistent across the country, and it’s likely that trend will continue this year. For example, office markets are strongest in major coastal cities and in technology-focused business districts.
Plus, the increasing popularity of telework is lowering the demand for office space, which led to nationwide office building vacancy rates of more than 16% in 2014.