The recent 63-market analysis of CBRE Group Inc. shows an improvement in office, retail, apartment and industrial real estate during the second quarter.
It reached a conclusion that the results offered an overall assessment of commercial real estate in the US. During the 2nd quarter, the office market saw a decline in vacancies of 14.5%, compared to 10% in the 1st quarter.
Vacancy rates decreased in 45 of the 63 markets. St Louis experienced the largest drop with 210 basis points. This sector’s success is boosted by the private-sector jobs and low levels of development.The industrial sector marked its 16th consecutive period of recovery as the availability rate declined to 10.9%. Of the 63 markets analyzed, 40 reported declines and nine remained level.
The group was led by Fort Lauderdale with a decline of 110 basis points. The main reason for the progress is economic growth.The retail market, particularly Tampa and Philadelphia saw an availability rate decline to 11.7%, which is expected to 11% this year.The apartment market saw the vacancy rate fall to 4.4%, with expectations of it remaining at that level this year.These results show success in CRE for this quarter and look rosy for the future.