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NAR reports commercial real estate offering incentives

Commercial real estate, hurt by weak job growth, are offering incentives that are conducive to business expansion, according to the National Association of Realtors.

Lawrence Yun, NAR chief economist, said the fallout from the recession continues to impact commercial real estate.

"Vacancy rates are beginning to level off in some sectors, but rent discounts and moderate levels of landlord concessions are widespread," he said. "This is very much a tenant's market, which is quite favorable for businesses that are considering expansion. It's also encouraging that there is a modest improvement in the sentiment of commercial real estate practitioners."

The Society of Industrial and Office Realtors surveyed 600 market experts, and reports respondents believe vacancy rates are beginning to level, but rents remain depressed and subleasing space is high. However, 57 percent of respondents expect improvements in the office and industrial sectors in the third quarter.

The NAR represents 1.1 million members involved in real estate.