Commercial real estate activity is being strangled by tightening credit standards and the weak economy, according to the National Association of Realtors.

“Although capital remains available for residential loans, the credit crunch is pronounced in commercial lending,” said Lawrence Yun, the NAR’s chief economist. “Combined with a slowing economy, the lack of credit is curtailing activity in the commercial real estate sectors. As a result, there’s been a slowdown in the net absorption of space, which is leading to higher vacancies and more modest rent growth.”

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