The U.S. commercial real estate market showed improvement across all property sectors in the second quarter of this year, according to the latest analysis from CBRE.
CBRE reports that vacancy in the nation's office buildings dropped to its lowest level since 2009, falling 30 basis points (bps) during the second quarter to 15.7%. National industrial availability dropped 20 bps during the quarter to 13.2%, continuing two years of improvement.
The retail availability rate declined slightly to 13% in the second quarter, down 10 bps compared to the previous quarter and down 20 bps compared to the rate one year ago. Absorption levels were well above the low square footage of new space completed in the second quarter, enabling availability rates to improve.
The nation's apartment buildings extended a spirited recovery as vacancy decreased 60 bps from a year ago to 4.8%. Compared to a year ago, vacancy rates declined in 52 markets, with the biggest year-over-year declines in vacancy (150 bps or more) in Fort Worth, Texas; Houston; Cincinnati; Birmingham, Ala.; Salt Lake City; Hartford, Conn.; and Orlando Fla.
‘The commercial real estate recovery remained intact in the second quarter, despite growing worries about the global economy,’ says Jon Southard, managing director at CBRE. ‘With construction well below typical levels in a recovery, any and all improvements in demand get channeled into a lower vacancy rate.’