“The improving economy and job creation mean growing demand for commercial real estate, according to the National Association of REALTORS®.”

“Lawrence Yun, NAR chief economist, said job creation will be the biggest factor moving forward. “Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8.0 percent by the end of next year,” he said. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down in the commercial real estate sectors. Individual markets are now stabilizing and in some cases rising.”

“From the second quarter of this year to the second quarter of 2012, NAR forecasts vacancy rates to decline 1.0 percentage point in the office sector, 0.9 point in industrial real estate, 0.5 point in the retail sector and 1.1 percentage points in the multifamily rental market.”

“The Society of Industrial and Office Realtors®, in its SIOR Commercial Real Estate Index, an attitudinal survey of more than 360 local market experts, shows a firming up of market fundamentals.”

“The SIOR index, measuring the impact of 10 variables, rose 6.8 percentage points to 57.5 in the first quarter, the highest since the fall of 2008. The Northeast and South drove improvements in market conditions. Vacancy rates are improving, but concessions continue to make it a tenant’s market.”

“Although the SIOR index remains notably lower than a level of 100 that represents a balanced marketplace, this is the sixth consecutive quarterly improvement after almost three years of decline. The last time the index was at 100 was in the third quarter of 2007.”

“A separate NAR commercial lending survey shows 65 percent of REALTORS® report lending conditions have tightened thus far in 2011, and six out of 10 failed to complete a transaction this year due to financing problems. Regional banks provide the majority of commercial loans, followed by private investors. National banks are a distant third.”

“Just as in the residential sector, lending problems are the biggest issue impacting commercial real estate,” Yun noted.

“The multifamily sector is the only area that has clearly turned the corner, resulting in consistently falling vacancy rates and rising rents. “Solid rises in apartment rents will force some renters to consider home ownership,” Yun said.”

“NAR’s latest COMMERCIAL REAL ESTATE OUTLOOK offers projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data were provided by CBRE Econometric Advisors.”

Office Markets

“Vacancy rates in the office sector are expected to fall from 16.3 percent in the second quarter of this year to 15.3 percent in the second quarter of 2012.”

“The markets with the lowest office vacancy rates currently are Honolulu and New York City, each with vacancies below 9 percent.”

“Office rents are projected to rise 0.3 percent this year and another 4.3 percent in 2012. In 57 markets tracked, net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is likely to be 26.6 million square feet in 2011.”

Industrial Markets

“Industrial vacancy rates are expected to decline from 13.9 percent in the current quarter to 13.0 percent in the second quarter of 2012.”

“At present, the areas with the lowest industrial vacancy rates are Los Angeles and Salt Lake City, with vacancies in the 7 to 8 percent range.”

“Annual industrial rent should decline 1.5 percent in 2011 before rising 2.0 percent next year. Net absorption of industrial space in 58 markets tracked is seen at 126.1 million square feet in 2011.”

Retail Markets

“Retail vacancy rates are forecast to decline from 13.1 percent in the second quarter of this year to 12.6 percent in the second quarter of 2012.”

“Markets with the lowest retail vacancy rates currently include Honolulu; Long Island, N.Y.; and San Jose, Calif., all with vacancies below 8 percent.”

“Average retail rent is expected to decline 1.4 percent in 2011, and then rise 0.7 percent next year. Net absorption of retail space in 53 tracked markets is projected to be 5.4 million square feet in 2011.”

Multifamily Markets

“The apartment rental market – multifamily housing – is continuing to tighten as household formation grows. Multifamily vacancy rates should drop from 5.8 percent in the current quarter to 4.7 percent in the second quarter of 2012.”

“Areas with the lowest multifamily vacancy rates presently are Pittsburgh; San Jose, Calif.; and Portland, Ore., with vacancies below 3 percent.”

“Average apartment rent is likely to rise 3.4 percent this year and another 4.3 percent in 2012. Multifamily net absorption is forecast at 250,800 units in 59 tracked metro areas in 2011.”

“El presidente Barack Obama viajará a América Latina esta semana para intentar recuperar el liderazgo económico en una región en la que ahora enfrenta un renovado protagonismo de China.”

“En su primer viaje al sur del continente en casi dos años, Obama visitará países donde muchos cuestionan que un mandatario preocupado por las revueltas en Oriente Medio, la crisis nuclear en Japón y los problemas internos en su país tenga algo que ofrecer a un continente que se siente cada vez más independiente.”

“La gira, que se llevará a cabo entre el 19 y el 23 de marzo, incluirá paradas en Brasil, la potencia sudamericana, Chile, un exitoso ejemplo de economía de libre mercado, y el pequeño estado centroamericano de El Salvador.”

“El desafió de Obama será convencer a los latinoamericanos, que siempre han resentido la noción de que sus países son “patios traseros” de Estados Unidos, sobre su compromiso en priorizar el comercio y la inversión, frente a una enérgica iniciativa de China por pisar fuerte en la región.”

“La gira también tiene importantes implicancias políticas para su país. La Casa Blanca defiende a América Latina como un mercado fértil para aumentar las exportaciones, que Obama considera como el camino indicado para crear empleo, un aspecto crucial para sus chances de disputar la reelección en el 2012.”

“Pero América Latina, apuntalada por un crecimiento que supera al de Estados Unidos, no sólo se está diversificando económicamente, sino que está demostrando que ya no está dispuesta a seguir las directivas de Washington.”

“No podemos ignorar al Hemisferio Occidental ni darlo por sentado, debido a que otras personas se están moviendo rápida y efectivamente”, dijo Eric Farnsworth, vicepresidente del Consejo de las Américas.”

“While President Obama’s proposed 2012 budget plan doesn’t specifically target the mortgage interest deduction by name, many believe it could be collateral damage from the 30 percent reduction in itemized deductions on income taxes — which the budget said is necessary to pay for a “three-year patch to prevent an increase in taxes on middle-class families through the Alternative Minimum Tax (AMT).”

“The Obama budget plan argues that the reduction “would bring these rates back to where they were during the last year of the Reagan presidency, and if enacted, this provision would be the largest single reduction in revenue-spending since the 1986 tax reform.”

“But while most observers agree that the new budget plan could reduce the mortgage interest deduction for some homeowners, they differ on whether this is a good policy for the country and the housing market”

“The IRS announced Thursday that it’s significantly reducing the number of liens it will place on property owned by delinquent taxpayers and will make it easier for taxpayers to get existing liens withdrawn.”

“The use of tax liens has soared more than 60 percent since the start of the recession, according to IRS Taxpayer Advocate Nina Olson. Olson has called on the IRS to moderate the use of this collection tool, which can make it difficult for an individual to find a job, obtain affordable housing or buy insurance.”

“IRS Commissioner Doug Shulman said the IRS will impose a lien when a taxpayer owes back taxes of $10,000, up from the previous threshold of $5,000. As a result of the higher threshold, “Tens of thousands of people won’t be burdened by liens,” Shulman said.”

“In addition, taxpayers who set up an installment plan to pay back taxes will usually be able to have their liens withdrawn, Shulman said.  A federal tax lien gives the IRS a legal claim to a taxpayer’s property for the amount of an unpaid tax debt. A tax lien can devastate a taxpayer’s credit score and make it difficult for the individual to sell a home or other property that has a lien against it.”

“In a statement, Olson called the announcement a “significant step in the right direction” but said it won’t address some of the problems that she outlined in her report to Congress.”

“For example, the IRS often files liens against taxpayers who own little or no property, Olson said, and those liens damage the taxpayers’ credit profile without producing any revenue for the government.”

“Simply raising the dollar threshold for lien filings does not provide for the level of thoughtful judgment that should serve as the basis for the use of this powerful collection tool,” Olson said.”

“The IRS also announced that it has broadened its Offer in Compromise program, which allows taxpayers to negotiate a reduction in the amount of taxes they owe. Shulman said taxpayers with annual incomes of up to $100,000 can participate in the program, up from the previous cut-off of $50,000.”

“Only a small percentage of Offers in Compromise filed with the IRS are accepted. To obtain a permanent reduction in their tax debts, applicants must demonstrate that they have exhausted all resources available to pay the tax and have little hope of raising the funds.”

“House Republicans called the Obama administration’s foreclosure prevention program “a colossal failure” and have introduced a bill to end it.”

“Republicans are calling for the immediate end of the Home Affordable Modification Program. The program has been under attack from both Republicans and Democrats in recent weeks for the program’s failure to do enough to prevent foreclosures.”

“It’s one more example of why government interference in the private sector doesn’t work and that’s why it should be repealed,” said Rep. Jim Jordan (R-Ohio), who introduced the bill, in a statement.”

“Administration officials have defended the bill, saying it has helped standardize industry practices and sparked more loan modifications in the private sector.”

“However, Republicans say that the program has been struck by low participation among home owners and has been far from reaching its goals. By the end of last month, about 522,000 home owners were enrolled in HAMP loan modifications. Yet, the program’s goal is 4 million home owners. The program has faced a high drop-out rate too: About 793,000 home owners who were once enrolled in HAMP have since left.”