The struggling economy and credit crunch continues to dampen commercial real estate activity, and prospects aren’t much brighter for the rest of the year, according to the National Association of Realtors.

“Significant job losses have reduced the demand for commercial space, while a lack of credit has stalled transactions and refinancing activity,” said Lawrence Yun, the NAR’s chief economist.

“It is critical for the Federal Reserve to increase liquidity by purchasing commercial mortgage-backed securities,” he said. “Because commercial real estate always lags an overall economic recovery, it will take some time for the commercial real estate market to rebound.”

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