Analysis
Offices and apartments gained ground in August, but the recovery remained uneven, the National Association of Realtors reported October 5. Its latest assessment describes improving occupancy alongside continued weakness in parts of commercial real estate.
Leasing improves, with exceptions
Office vacancy edged lower and the annual increase in occupied space strengthened. Class A properties led leasing activity. Class B offices continued to lose tenants despite space being removed from the market, while Class C offices also lost occupied space.
For apartments, demand exceeded additions of new units as the pace of new supply slowed. NAR said this helped reduce vacancies and gradually strengthen rent growth, although landlords still had limited ability to raise rents.
NAR also described restrained hotel investment amid high borrowing costs and economic uncertainty. Better occupancy alone does not establish that a building’s finances have recovered.
What remains uncertain
The narrative covers August; some charts say Q3. Chart figures are omitted. This is NAR’s assessment, not independent property-level verification.