Residential Sales Are Down But Commerical is Up

Residential real estate may be lower and sales are are down, but investment in commercial real estate is at record levels, this from the latest Commercial Real Estate Outlook by the NAR.
Office is booming, industrial is doing well, apartments are strong and retail is somewhat sluggish.
$157,000,000,000 was invested in the first four months of 2007, which is up 62% over the same period in 2006. The report goes on in more detail:

• Office Markets - Manhattan, Chicago, North Virginia and San Francisco had the most transactions. Vacancies are lowest in New York City, Ventura County, CA, Honolulu, Orange County, CA, Los Angeles and Miami.
• Industrial Markets - Demand is strongest in coastal markets and inland ports and distribution hubs. Rents should also rise.
• Retail Markets - Because retail sales have slowed, demand for retail space has as well. Vacancy is expected to rise.
• Multifamily Markets - Condo conversions in many markets including the Phoenix multifamily market have reduced inventory.  Vacancy is projected to average 5.8% and rents are projected to increase by 2.1% in 2007, but Greater Phoenix rents are expected to increase at a rate greater then the national average.