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US commercial real estate mkt sags in Q2-trade group
(Reuters) - U.S. commercial real estate activity in the second quarter slowed to its lowest level in 15 years as demand for office and retail space collapsed amid the severe recession, a real estate trade group said on Wednesday.
The National Association of Realtors (NAR) said its Commercial Leading Indicator for brokerage activity index fell 1.3 percent to 101.5 in the second quarter, the lowest reading since the first three months of 1994.
“The reduction in commercial real estate activity is expected to last at least through the first quarter of 2010. Any meaningful recovery is not likely to occur before the second half of next year,” said NAR chief economist Lawrence Yun.
Commercial real estate has been hampered by the lack of access to credit. In a step to boost credit to the $6 trillion market, the Federal Reserve extended its Term Asset-Backed Securities Loan Facility (TALF) to mid-2010 this week.
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