The results reported by the Los Angeles-based firm echo other recent Quidnunc items on the strong office market.The report says that vacancy rates fell in 44 of 63 U.S. office markets the company surveyed, significantly, declining by 30 basis points to 14.8% in 2013's fourth quarter.
- Posted at 11:03, January 08, 2014
- By Russ Bleemer
The report notes that the national industrial market availability rate--defined as space that is actively being marketed and available for tenant build-out within 12 months--was at 11.3%, the 14th consecutive quarter of decline. The rate declined 140 basis points last year, CBRE reports, "and is now 330 [basis points] below its recessionary peak," with another 30-point decline forecast for 2014.
The retail availability rate also declined significantly, to 12.0%, but New York was one of only five markets, along with San Diego, Albuquerque, Raleigh and Tampa, with higher availability than in 2012's fourth quarter. CBRE forecasts a decline to 10.6% for neighborhood and community shopping centers this year.
Demand for the nation’s apartment buildings remained strong with vacancy of 5.0% in Q4 2013. Preliminary CBRE data shows that overall apartment demand grew strongly in 2013's fourth quarter, with the vacancy rate for "professionally-managed apartment units" at 5%, "holding steady relative to a year earlier." The report forecasts that the U.S. multi-housing market vacancy rate will average 5.3% in 2014.
"Commercial real estate closed out 2013 on an encouraging note,” said Jon Southard in the press statement. "Strong demand for space across all product categories bodes well for real estate investment and for the economy."
You can see the full CBRE press release on the company's website HERE.