Residential real estate has reported gains in sales in the last month, but commercial real estate may be in for tougher times.

According to the National Association of Realtors, "The softening of economic conditions in recent months should impact commercial real estate markets in the months ahead."

Lawrence Yun, NAR chief economist, said commercial real estate activity, as measured by net absorption and the completion of new commercial buildings, is projected to weaken over the next six to nine months. "The pace of decline has intensified due to job cuts and very sluggish economic activity since the beginning of the year, particularly in those industries requiring commercial building spaces," he said. "We anticipate the weakest commercial brokerage activity in nearly three years as a result.

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Published: August 29, 2008

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