According to the latest report from the National Association of Realtors -- the recent Wall Street woes have started to slow growth in the commercial real estate arena.

"Although capital remains available for residential loans, the credit crunch is pronounced in commercial lending," NAR chief economist, Lawrence Yun said. "Combined with a slowing economy, the lack of credit is curtailing activity in the commercial real estate sectors. As a result, there's been a slowdown in the net absorption of space, which is leading to higher vacancies and more modest rent growth."

The bright light in this cloudy report is the Multi-family market. The NAR reports "the apartment rental market ... remains favorable as many potential first-time home buyers stay on the sidelines. Apartment rents are expected to rise at respectable pace, partly due to healthy demand for rental units."

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Published: September 19, 2008

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