Last year’s performance in the commercial sector may be a big factor in what’s driving their optimism heading into 2020. Commercial dollar sales volume increased 4% in 2019 in the fourth quarter compared to a year ago. New leasing dollars rose 3%. Commercial development was up 5% (in square feet), according to NAR’s report.
Further, the expected improvement of trade relations between the U.S. and China with the signing of the U.S.-China Phase One Trade Deal on Jan. 15 may be part of what is boosting confidence about the economic outlook too, notes Scholastica Cororaton with NAR’s research team on its Economists’ Outlook blog.
Of the 690 respondents surveyed by NAR, commercial practitioners reported the largest increases in these sectors:
76% reported an increase in multi-tenanted office buildings;
71% reported an increase in retail properties that are being repurposed;