National Association of REALTORS

COMMERCIAL REAL ESTATE

OUTLOOK: 2016.Q3

Commercial Real Estate Outlook: 2016.Q3

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COMMERCIAL REAL ESTATE

OUTLOOK

NATIONAL ASSOCIATION OF REALTORS

2016 OFFICERS
President
Tom Salomone
President-Elect
Bill Brown
First Vice President
Elizabeth Mendenhall, GRI, ABR, ABRM,
CIPS, CRB, PMN
Treasurer
Michael McGrew, CRB, CRS
Immediate Past-President
Chris Polychron, CIPS, CRS, GRI
Vice President
Michael Labout, GRI
Vice President
Sherri Meadows, GRI, CIPS, CRB, PMN
Chief Executive Officer
Dale Stinton, CAE, CPA, CMA, RCE

COMMERCIAL REAL ESTATE

OUTLOOK

CONTENTS
1 | Economic Overview

2 | Commercial Real Estate Investments..

3 | Commercial Real Estate Fundamentals

12

4 | Outlook...

14

COMMERCIAL REAL ESTATE

OUTLOOK

Gross Domestic Product

Director, Quantitative & Commercial Research

gratiu@realtors.org

Exhibit 1.1: Real GDP (% Annual Chg.)

6.0
5.0
4.0
3.0
2.0
1.0

-2.0

2016

2016.Q2

2015.Q4

2015.Q2

2014.Q4

2014.Q2

2013.Q4

2013.Q2

2012.Q4

-1.0

2012.Q2

0.0
2011.Q4

Businesses accounted for the noticeable weakness,

with a 2.3 percent decline in nonresidential private
investment during the second quarter. Businesses
cut back investments in equipment and commercial
construction to the tune of 3.5 percent and 7.9
percent, respectively. The 12.0 percent gain in
industrial equipment spending was not enough to
offset cuts in information processing and
transportation equipment. Spending on intellectual
property productssoftware, R&Dincreased by
3.6 percent. Investments in residential real estate
decreased at a 6.1 percent annual rate.

GEORGE RATIU

2011.Q2

Economy activity in the second quarter was

disappointing, as the corporate outlook took a
slightly bearish undertone. Based on the first
estimate from the Bureau of Economic Analysis, real
gross domestic product (GDP) rose at an annual
rate of 1.2 percent, considerably below most
economists projections. The figure remained well
below the long-run historical average of 3.2 percent,
typical of second quarter performance.

Source: NAR, BEA

International trade posted positive results, even with

a rising dollar. Exports rose by 1.4 percent, while
imports declined at a 0.4 percent annual rate of
growth.

grocery stores. Consumer spending on services

rose 3.0 percent on an annual basis, with housing,
health care, as well as lodging and restaurants
driving expenditures.

Consumer spending turned out to carry the quarters

economic activity. Personal consumption rose at an
annual rate of 4.2 percent in the second quarter,
with most of the gain driven by purchases of goods.
Spending on durable goods rose 8.4 percent, driven
by double-digit increases in consumer spending on
recreational goods and vehicles (up 14.3 percent).
Sales of nondurable goods also posted solid growth,
with an annual increase of 6.0 percent, as
consumers spent more on food and beverages in

Government spending declined at a 0.9 percent

annual growth rate. The federal government
continued making spending cuts, with a 0.2 percent
decline, driven by cutbacks in defense expenditures.
State and local governments also decreased
spending at a 1.3 percent annual rate, due to cuts in
infrastructure investments (down 9.6 percent).

NATIONAL ASSOCIATION of REALTORS | RESEARCH DIVISION | www.realtors.org/research-and-statistics

COMMERCIAL REAL ESTATE

OUTLOOK

Employment
The employment landscape provided the silver
lining to the disappointing economic performance in
the first half of the year. Payrolls rose at a solid
pace, adding 460,000 net new positions in the
second quarter, in the wake of 587,000 net new jobs
in the first quarter of this year. Average weekly
earnings of private employees rose by 2.2 percent in
the second quarter of this year, compared to one
year earlier.
Employment in private service-providing industries
drove new job growth during the second quarter of
the year, with 405,000 net new jobs. Education and
health services had the highest number of net new
employees151,000. Professional and business
services added 142,000 net new payroll positions,
while financial services added 52,000 new positions
to payrolls, keeping demand for office space
positive. Employment in leisure and hospitality
advanced 70,000 new positions, mirroring positive

Exhibit 1.2: Payroll Employment (Change,

'000)
600

Leisure/Hospitality
Educ./Health
Prof./Bus. Services
Financial Activities
Information
Utilities
Transp./Warehousing
Retail Trade
Wholesale Trade
Manufacturing

-200

2007 - Jan
2007 - Aug
2008 - Mar
2008 - Oct
2009 - May
2009 - Dec
2010 - Jul
2011 - Feb
2011 - Sep
2012 - Apr
2012 - Nov
2013 - Jun
2014 - Jan
2014 - Aug
2015 - Mar
2015 - Oct
2016 - May

-600
-800
-1000

Government

Source: BLS

Mining/Logging

200

-400

Exhibit 1.3: Payroll Employment: 12Month Change ('000)

Construction

400

-200

demand for the hotel sector. With demand for

industrial properties rising, transportation and
warehousing employment gained 9,700 new
positions, while wholesale trade employment rose
by 600 jobs.

200

400

600

800

The unemployment rate averaged 4.9 percent in the

second quarter of 2016, flat with the first quarters
average. At the end of July there were 7.8 million
unemployed Americans, while an additional 5.9
million were employed part-time for economic
reasons. The average duration of unemployment
declined from 30 weeks in the second quarter of
2015 to 27 weeks in the second quarter of this year.

Source: BLS

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COMMERCIAL REAL ESTATE

OUTLOOK

The labor force participation (LFP) rate declined

slightly, from 62.9 percent in the first quarter to 62.7
percent in the second quarter. In comparison, before 12
the Great Recession the LFP rate was 65.9 percent.
With the Baby Boomers retirement wave rising and
10
discouraged workers staying out of the labor force,
the low participation rate is likely to lead to
8
continued sluggishness in economic growth.

Exhibit 1.5: Unemployment

Unemployment Rate (%)

45

Average Unemployment Duration (Weeks)

40
35

30
25

Exhibit 1.4: Labor Force Participation Rate

6
20
4

68

15

10

67

2
5

66
0

0
2001 - Jan
2001 - Dec
2002 - Nov
2003 - Oct
2004 - Sep
2005 - Aug
2006 - Jul
2007 - Jun
2008 - May
2009 - Apr
2010 - Mar
2011 - Feb
2012 - Jan
2012 - Dec
2013 - Nov
2014 - Oct
2015 - Sep

65
64
63

Source: BLS

2001 - Jan
2001 - Nov
2002 - Sep
2003 - Jul
2004 - May
2005 - Mar
2006 - Jan
2006 - Nov
2007 - Sep
2008 - Jul
2009 - May
2010 - Mar
2011 - Jan
2011 - Nov
2012 - Sep
2013 - Jul
2014 - May
2015 - Mar
2016 - Jan

62

Source: BLS

Consumer confidence, as measured by The

Conference Board, declined to 94.8 in the second
quarter of 2016, from 96.0 in the first quarter.
Separately, the Consumer sentiment index compiled
by the University of Michigan moved up slightly in
the second quarter of the year to 92.4, compared
with the 91.6 value from the first quarter. Both
remain lower on a year-over-year basis.

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COMMERCIAL REAL ESTATE

OUTLOOK

Commercial sales transactions span the price

spectrum, but tend to be measured and reported
based on size. CRE deals at the higher end$2.5
million and abovecomprise a large share of
investment sales, and generally receive most of the
press coverage. Smaller commercial transactions
tend to be obscured given their size. However,
these smaller properties provide the types of
commercial space that the average American
encounters on a daily basise.g. neighborhood
shopping centers, warehouses, small offices,
supermarkets, etc. These are the types of buildings
that are important in local communities, and
REALTORS are active in serving these markets.

Large Commercial Real Estate Markets

Commercial real estate sales in large cap markets
declined in the first half of 2016 (H1.2016), due to a
weak first quarter. The volume of commercial sales
in LCRE markets totaled $219.2 billion in H1.2016, a
16 percent year-over-year decrease, according to
Real Capital Analytics (RCA). The data saw yearly
declines in both individual and portfolio transactions
during the first six months, of 4 percent and 39
percent, respectively.
Continuing past years trends, apartment
transactions comprised the largest share of H1.2016
volume, with $72.0 billion in sales, followed by office
properties, which accounted for $63.4 billion. Retail
and industrial sales totaled $36.6 billion and $25.7
billion, respectively.

Exhibit 2.1: CRE Sales Volume ($2.5M+)

Billions

Commercial space is heavily concentrated in large

buildings, but large buildings are a relatively small
number of the overall stock of commercial buildings.
Based on Energy Information Administration data
approximately 72 percent of commercial buildings
are less than 10,000 square feet in size.1 An
additional eight percent of commercial buildings are
less than 17,000 square feet in size. In short, the
commercial real estate market is bifurcated, with the
majority of buildings (81 percent) relatively small
(SCRE), but with the bulk of commercial space (71
percent) in the larger buildings (LCRE).

Individual

$180

Portfolio

Entity

$160
$140
$120
$100
$80
$60
$40
$20
15Q4

15Q1

14Q2

13Q3

12Q4

12Q1

11Q2

10Q3

09Q4

09Q1

08Q2

07Q3

06Q4

06Q1

$-

Source: Real Capital Analytics

1

Smith and Ratiu, (2015), "Small Commercial Real Estate Market,"

National Association of REALTORS

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COMMERCIAL REAL ESTATE

OUTLOOK

Even with declining sales volume, prices in LCRE

markets rose. Based on preliminary data, prices in
markets covered by Real Capital Analytics gained
9.0 percent during the first half of 2016. The
advance was driven by strong appreciation in prices
of apartment and retail properties, which advanced
11.0 percent and 9.1 percent, respectively. Prices
for industrial properties increased 5.3 percent yearover-year, while office properties recorded a slight
0.5 percent rise.

Capitalization rates in LCRE markets averaged 6.8

percent in the second quarter, based on RCA
reports, 10 basis points lower compared with the
prior year. Cap rate compression continued for
apartment and office properties, with the average
yields tied at 5.6 percent in the second quarter of
this year.

Exhibit 2.3: NCREIF Property Index Returns

2016.Q2
NATIONAL

2.03%

OFFICE

1.74%

INDUSTRIAL

2.90%

RETAIL

2.17%

300

APARTMENT

1.88%

250

Source: National Council of Real Estate Investment Fiduciaries

Exhibit 2.2: Commercial Property Price

Indices
NCREIF

Green Street Advisors

Real Capital Analytics

200
150
100
50

2001 - Q1
2002 - Q1
2003 - Q1
2004 - Q1
2005 - Q1
2006 - Q1
2007 - Q1
2008 - Q1
2009 - Q1
2010 - Q1
2011 - Q1
2012 - Q1
2013 - Q1
2014 - Q1
2015 - Q1
2016 - Q1

Separately, additional price indices also advanced.

The Green Street Advisors Commercial Property
Price Index advanced 6.6 percent on a yearly basis
during the second quarter, reaching a value of
124.7. The National Council of Real Estate
investment Fiduciaries (NCREIF) Price Index
increased at a slower 1.7 percent year-over-year in
the second quarter of 2016, to a value of 254.6.
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COMMERCIAL REAL ESTATE

OUTLOOK

Exhibit 2.5: Sales Prices (YoY % Chg)

Small Commercial Real Estate Markets

Real Capital Analytics CRE Markets

REALTOR CRE Markets
20.0%
10.0%
0.0%
-10.0%

The proportion of members who closed deals in the

second quarter of 2016 advanced to 66 percent,
from 58 percent in the first quarter. The direction of
commercial business opportunities during the
second quarter of 2016 rose 5.6 percent from the
prior quarter.

Exhibit 2.4: Sales Volume (YoY % Chg)

Real Capital Analytics CRE Markets
REALTOR CRE Markets
200%
150%

2008.Q4
2009.Q2
2009.Q4
2010.Q2
2010.Q4
2011.Q2
2011.Q4
2012.Q2
2012.Q4
2013.Q2
2013.Q4
2014.Q2
2014.Q4
2015.Q2
2015.Q4
2016.Q2

In contrast, commercial real estate in small cap

markets maintained its upward momentum during
the first half of 2016, with REALTORS reporting
continued improvement in fundamentals and
investment sales. Following on the first quarters
8.5 percent increase in sales volume, second
quarter transactions rose 8.4 percent on a yearly
basis.

-20.0%
-30.0%
-40.0%

Sources: NAR, Real Capital Analytics

ranked concern. With banks tightening underwriting

standards for commercial loans in the wake of
increased regulatory scrutiny, financing availability
increased as a concern in REALTORS markets
15.0 percent of members ranked it as a main
challenge in the second quarter, up from 7.0 percent
in the first quarter.

50%

Average capitalization rates continued compressing,

to an average 7.2 percent across all property types,
a 20 basis point compression on a yearly basis.

0%

Exhibit 2.6: Cap Rates - 2016.Q2

-50%

2008.Q4
2009.Q2
2009.Q4
2010.Q2
2010.Q4
2011.Q2
2011.Q4
2012.Q2
2012.Q4
2013.Q2
2013.Q4
2014.Q2
2014.Q4
2015.Q2
2015.Q4
2016.Q2

100%

-100%
Sources: NAR, RCA

The shortage of available inventory remained the

number one concern for NAR members, pushing
price growth upward. During the second quarter of
this year, commercial properties exchanged hands
at average prices 5.3 percent higher compared with
the same period in 2015. The average transaction
price was level at $1.4 million in the first and second
quarters of 2016. A perceived pricing gap between
sellers and buyers remained the second highest

10.0%

RCA Markets

REALTOR Markets

8.0%
6.0%
4.0%
2.0%
0.0%
Office

Industrial

Retail

Apartment

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Hotel

10

COMMERCIAL REAL ESTATE

OUTLOOK

Apartments posted the lowest cap rate, at 6.5

percent, followed by office properties with average
cap rates at 6.8 percent. Hotel and retail spaces
recorded cap rates of 7.0 percent and 7.1 percent,
respectively. Industrial transactions reported the
highest comparative cap rates7.4 percent.
The interest rate on 10-year Treasury Notesa
standard measure of risk-free investments
averaged 1.2 percent during the second quarter of
2016, the lowest point since 2013. Based on the
prevailing rates, the spread between cap rates and
10-year Treasury Notes ranged from 500 basis
points in LCRE markets to 540 basis points in SCRE
markets. The spread indicates that CRE investors
continue to enjoy healthy returns in the markets.

Exhibit 2.7: CRE Spreads: Cap Rates to 10Yr. T-Notes (bps)

RCA Cap Rates

REALTORS Cap Rates

1200
1000
800
600
400
200
0

Sources: NAR, Real Capital Analytics

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11

COMMERCIAL REAL ESTATE

OUTLOOK

Large Commercial Real Estate Markets

Demand for commercial spaces remained robust in
the first half of 2016, with solid second quarter
fundamentals. With construction taking a breather,
the gap between demand and supply exerted
downward pressure on availability.
Office net absorption totaled 19.4 million square feet
in the first half of the year, with 11.5 million square
feet in the second quarter, based on data from
CBRE. Office construction decelerated, adding 7.5
million square feet to the supply pipeline during the
quarter. Overall office vacancies declined 10 basis
points on a yearly basis, to 13.0 percent in the
second quarter. CBD office properties continued
posting lower availability10.5 percentthan their
suburban counterparts14.4 percent. However,
office CBD vacancy rose for two quarters, while
suburban availability declined. Rents for office
properties rose 6.2 percent during the second
quarter, to an average of $30.88 per square foot.

confidence. Retain net absorption totaled 15.5

million square feet in the second quarter of 2016,
according to JLL. Retail development activity
remained modest, with 7.7 million square feet of
new completions. Rents for retail properties rose 1.9
percent during the quarter. Vacancy rates for retail
buildings declined 20 basis points, to 5.0 percent,
based on JLL data.
Demand for multifamily properties continued on an
upward path. The national vacancy rate averaged
4.8 percent for apartment housing during the second
quarter. Apartment rents rose 2.3 percent in the
second quarter of this year, according to
Axiometrics.

Strengthening fundamentals characterized the

industrial sector as well during the second quarter,
as demand outpaced supply. Industrial net
absorption totaled 66.4 million square feet in the
second quarter, marking the 25th positive demand
quarter, according to CBRE. While industrial
developers took notice of the upward trend, new
completions totaled 41.6 million square feet. As
demand continued outmatching new construction,
industrial vacancies declined to 5.2 percent.
Industrial rents rose 6.6 percent on a yearly basis, to
an average of $5.96 per square foot in the second
quarter.
The retail sector mirrors changing demographics
and growing markets. Demand for retail properties
increased in tandem with rising employment and

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12

COMMERCIAL REAL ESTATE

OUTLOOK

Small Commercial Real Estate Markets

Commercial fundamentals in smaller markets
continued improving during the second quarter of
2016. Leasing volume accelerated during the
quarter, with an 8.7 percent increase over the prior
quarter. Leasing rates advanced at a steady pace,
rising 3.7 percent in the second quarter. Office
properties posted rents averaging $32 per square
foot, while retail and industrial leases recorded $38
and $22 per square foot, respectively. Average
apartment rents for the first quarter were $535 per
unit.

terms remained steady, with 36-month and 60month leases capturing 60.0 percent of the market.
Two-year leases made up 15.0 percent of total.
Vacancy rates continued declining, ranging from a
low of 5.0 percent for apartments to a high of 13.2
percent for hotel properties. Office vacancies
declined 365 basis points year-over-year, to 12.3
percent. Industrial availability witnessed a yearly
decrease of 95 basis pointsto 9.8 percent. Retail
vacancies slid 70 basis points on a yearly basis, to
11.8 percent. With declining vacancies, lease
concessions declined 5.5 percent.

Exhibit 3.1: REALTORS Fundamentals

New Construction

Leasing Volume

15%

Exhibit 3.2: REALTORS Commercial

Vacancy Rates

5%
2016.Q2

2015.Q4

2015.Q2

2014.Q4

2014.Q2

2013.Q4

2013.Q2

2012.Q4

2012.Q2

2011.Q4

2011.Q2

2010.Q4

-10%

2010.Q2

-5%

2009.Q4

0%
2009.Q2

% Change, Quarter-over-quarter

10%

-15%

30.0%

-20%

25.0%

-25%

20.0%

-30%

Source: National Association of Realtors

NAR members average gross lease volume for the

quarter was $229,658, 51.4 percent lower than the
previous period. New construction picked up,
posting a 5.3 percent gain from the first quarter of
2016.
Tenant demand remained strongest in the 5,000
square feet and below segment, accounting for 82.0
percent of leased properties. Demand for space in
the 10,000 49,999 square feet segment rose from
5.0 percent in the first quarter of 2016, to 8.0
percent in the second quarter of this year. Lease

Office

Industrial

Multifamily

Hotel

Retail

15.0%
10.0%
5.0%
0.0%

Source: National Association of Realtors

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13

COMMERCIAL REAL ESTATE

OUTLOOK

Economy
Looking ahead at the second half of 2016, the GDP
annual rate of growth is expected to moderately
outperform the first half. However, in light of the
weak first quarter, the annual growth is pegged at
1.9 percent. Payroll employment is projected to post
1.6 percent annual growth rate for the year. The
unemployment rate is projected to fall to 4.8 percent
by the end of 2016.

Exhibit 4.1: U.S. ECONOMIC OUTLOOKAugust 2016

Annual Growth Rate, %

Real GDP
Nonfarm Payroll
Employment
Consumer Prices

The markets continue to weigh the expected

Federal Reserves increases in the funds target rate. Level
Inflation is expected to average 1.4 percent over
Consumer Confidence
2016, accelerating in the third quarter.
Percent
Unemployment
In light of increased market volatility and slowing
economic growth, consumer confidence has
Fed Funds Rate
moderated and is expected to hover just below its
3-Month T-bill Rate
long-term average.
Corporate Aaa Bond Yield
10-Year Govt Bond
30-Year Govt Bond

2014

2015

2016

2017

2.4

2.4

1.9

2.2

1.9
1.6

2.1
0.2

1.6
1.4

1.8
2.7

87

98

99

102

6.2
0.1
0.1
4.2
2.5
3.3

5.3
0.1
0.1
3.9
2.1
2.8

4.9
0.4
0.3
3.6
1.8
2.5

4.7
0.9
0.9
3.8
2.3
3.0

Source: National Association of REALTORS

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14

COMMERCIAL REAL ESTATE

OUTLOOK

Commercial Real Estate

Exhibit 4.2: Commercial Real Estate Vacancy Forecast (%)
2015.Q1 2015.Q2 2015.Q3 2015.Q4 2016.Q1 2016.Q2 2016.Q3 2016.Q4 2017.Q1 2017.Q2 2017.Q3 2017.Q4 2015 2016 2017

Office
15.1
Industrial
11.3
Retail
13.7
Multifamily 8.4

15.9
10.8
13.2
6.6

16.0
11.5
13.0
7.4

14.3
11.4
12.9
6.2

13.4
11.1
12.5
7.8

12.3
9.8
11.8
5.0

11.9
9.4
11.5
5.9

11.5
9.4
11.2
5.8

11.1
9.1
11.1
6.6

10.8
8.9
10.8
6.3

10.4
8.7
10.5
6.1

9.9 14.3 12.3 10.6

8.4 11.4 9.9 8.8
10.3 12.9 11.8 10.7
5.8 6.2 6.1 6.2

On the investment side, while financial markets

volatility left a mark on the sales volume in large cap
CRE markets during the first half of 2016, volume is
expected to rebound slightly in the latter half of the
year. In small cap CRE markets, increased scrutiny
from banking regulators has tightened lending
conditions, leading to more cautious capital flows
into CRE transactions.

NCREIF
Green St. Advisors

$180
$160
$140
$120
$100
$80
$60
$40
$20
$-

Exhibit 4.3: CRE Sales Volume ($2.5M+)

Forecast

2006Q1
2006Q4
2007Q3
2008Q2
20'09Q1
2009Q4
2010Q3
2011Q2
2012Q1
2012Q4
2013Q3
2014Q2
2015Q1
2015Q4
2016Q3
2017Q2
2018Q1

Commercial fundamentals remain on an upward

trajectory, with three of the four core sectors tilting in
landlords favor. As employment gains drive
demand, office vacancies are projected to decline to
11.5 percent by the fourth quarter of 2016 and
decline to 10.6 in 2017. Industrial availability is
estimated to drop from an average of 11.4 percent in
2015 to 9.4 percent by the end of 2016. Retail
availability will continue shrinking, as vacancies are
projected to decline from 12.9 percent in 2015 to
11.8 percent in 2016. The multifamily sector
diverges from the others, as new supply coming on
the market has been exerting upward pressure on
availability. Multifamily vacancies are expected to
increase over the next couple of years, from 6.1
percent in 2016 to 6.2 percent in 2017.

Billions

Source: National Association of REALTORS

Source: NAR, RCA

Given the global low yield environment, U.S. CRE is

well-positioned to continue as an attractive
alternative for investors this year. Investors
approach will remain moderated, leading to a
slowdown in CRE prices. With cap rates at very low
levels and markets eyes on the Federal Reserves
interest rate action this year, the price slowdown is
likely to be felt stronger in Class A assets in top-tier
markets. Properties in smaller markets, remain on
an upward path, given the three-year lag in the
recovery.

Exhibit 4.4: Commercial Property Price Indices Forecast

2009
2010
2011
2012
2013
2014
165.1
168.2
186.5
195.2
211.9
224.9
63.5
74.4
87.1
92.2
99.4
106.7

2015
246.7
118.0

2016
244.3
119.4

2017
249.0
124.2

Sources: NAR, NCREIF, Green Street Advisors

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15

COMMERCIAL REAL ESTATE

OUTLOOK

The National Association of REALTORS, The Voice for Real Estate, is Americas largest trade
association, representing over 1.2 million members, including NARs institutes, societies and
councils, involved in all aspects of the real estate industry. NAR membership includes brokers,
salespeople, property managers, appraisers, counselors and others engaged in both residential
and commercial real estate. The term REALTOR is a registered collective membership mark
that identifies a real estate professional who is a member of the National Association of
REALTORS and subscribes to its strict Code of Ethics. Working for America's property owners,
the National Association provides a facility for professional development, research and
exchange of information among its members and to the public and government for the purpose
of preserving the free enterprise system and the right to own real property.
NATIONAL ASSOCIATION OF REALTORS
RESEARCH DIVISION
The Mission of the National Association of REALTORS Research Division is to collect and
disseminate timely, accurate and comprehensive real estate data and to conduct economic
analysis in order to inform and engage members, consumers, and policy makers and the media
in a professional and accessible manner.
To find out about other products from NARs Research Division, visit
www.REALTOR.org/research-and-statistics

NATIONAL ASSOCIATION OF REALTORS

RESEARCH DIVISION
500 New Jersey Avenue, NW
Washington, DC 20001
202.383.1000

COMMERCIAL REAL ESTATE OUTLOOK | 2016.Q3