Diabetes UK and Tesco analysis: More than 700 people a day are diagnosed with diabetes in the UK

Cheshunt, England, 2014-7-9 — /EPR Retail News/ — More than 700 people a day are diagnosed with diabetes in the UK, according to new analysis by Diabetes UK and Tesco.

The analysis, based on National Diabetes Audit data, shows that 738 people a day are diagnosed with Type 2 diabetes, which has being overweight as the biggest risk factor. A further 30 people per day are diagnosed with Type 1 diabetes, which tends to affect younger people and is not linked to weight. Type 2 diabetes now accounts for 96 per cent of new cases of diabetes.

The figures mean there are more than 280,000 people a year diagnosed with diabetes, the equivalent of the population of Newcastle. This is much higher than previously thought and illustrates how the rise in diabetes, with 3.8 million people in the UK now having the condition and with around 35 per cent of the population – more than 18 million people – with pre-diabetes, there are serious implications for the nation’s health.

Diabetes UK is calling for more focus on preventing Type 2 diabetes. Diabetes UK would like to see everyone aged 40 to 74 get an NHS Health Check and for greater investment in ensuring those people identified at high risk get the support they need to help prevent it.

The findings of the analysis have been released as Diabetes UK and Tesco announce that their National Charity Partnership is being extended until the end of 2014. The Tesco – Diabetes UK partnership is one of the biggest retail charity partnerships in the UK. The partnership has raised £12 million since March 2013 and has used Tesco’s scale to deliver more than 100,000 risk assessments for Type 2 diabetes, both in pharmacies and online, to help prevent people developing the condition. It has also given thousands of people with diabetes more of the information and support they need to successfully manage their condition.

Tesco colleagues and customers are now aiming to raise a total of £18 million to support Diabetes UK’s work. Tesco’s decision to extend the partnership– the first time it has done this – reflects that the scale of diabetes means it is now one of the biggest health threats facing the UK. It is projected that the number of people with diabetes will rise to 5 million by 2025.

The extra money is expected to fund diabetes research, promote healthy eating in families and help en sure children with Type 1 diabetes get the support they need in schools.

Barbara Young, Chief Executive of Diabetes UK, said: “It is deeply worrying that more than 700 people a day are being diagnosed with diabetes and this clearly shows the frightening scale of what is fast becoming a national health emergency.

“If we continue to see people being diagnosed at this rate then the consequences will be disastrous.  As the number of people with diabetes grows, we are likely to see even more people endure devastating health complications such as amputation and kidney failure and more people die tragically young. It would also lead to an increase in NHS costs that would be simply unsustainable.

“As a country, we are still not giving diabetes healthcare the priority it needs and we also need to get much better at preventing Type 2 diabetes before it is too late.

“But our National Charity Partnership with Tesco has made a real difference. Over the last year Tesco has used its reach to enable us to give a huge number of people potentially lifesaving information about how they can manage their diabetes and to risk assess more than 117,000 people for Type 2. This will have a real impact in reducing diabetes complications and help to prevent the rising tide of Type 2 diabetes. The extension of the partnership means many more people will get the support they need to have the best possible chance of a long and healthy life.”

Greg Sage, Community Director for Tesco said: “Diabetes is a growing and urgent health threat that needs immediate action.

“We’ve raised over £12 million so far through our partnership with Diabetes UK, and today’s announcement means there will be more support for the millions of people living with diabetes from our colleagues and customers. Tesco colleagues have embraced the partnership and demonstrated real dedication to raising money for this important cause.

“At Tesco we’re also working to help people reduce their risk of developing Type 2 diabetes by helping people lead healthier lives – we have cut the number of calories by billions across our ranges, and we will be the first major retailer to remove sweets and chocolates from checkouts across all stores.”

– ENDS –

For further media information please contact Richard Evans on 020 7424 1152 or the Diabetes UK Media Relations Team on 020 7424 1165 or email pressteam@diabetes.org.uk

For urgent out of hours media enquiries only please call 07711 176 028. ISDN facilities available.

About Diabetes UK:

  • Diabetes UK is the leading UK charity that cares for, connects with and campaigns on behalf of all people affected by and at risk of diabetes.  For more information on all aspects of diabetes and access to Diabetes UK activities and services, visit www.diabetes.org.uk
  • In the UK, there are around 3.8 million people who have diabetes.  There are more than 3.2 million people living with Type 1 and Type 2 diabetes, and around 630,000 more who have Type 2 diabetes but don’t know they have it because they haven’t been diagnosed.  As many as 7 million people are at high risk of developing Type 2 diabetes and if current trends continue, an estimated 5 million people will have diabetes by 2025.
  • Diabetes is a condition where there is too much glucose in the blood because the body cannot use it properly.   If not managed well, both Type 1 and Type 2 diabetes can lead to devastating complications.  Diabetes is the leading cause of blindness in people of working age in the UK and is a major cause of lower limb amputation, kidney failure and stroke.
  • People with Type 1 diabetes cannot produce insulin.  About 10 per cent of people with diabetes have Type 1.   No one knows exactly what causes it, but it’s not to do with being overweight and it isn’t currently preventable.  It usually affects children or young adults, starting suddenly and getting worse quickly.  Type 1 diabetes is treated by daily insulin doses – taken either by injections or via an insulin pump – a healthy diet and regular physical activity.
  • People with Type 2 diabetes don’t produce enough insulin or the insulin they produce doesn’t work properly (known as insulin resistance).  85 to 90 per cent of people with diabetes have Type 2.  They might get Type 2 diabetes because of their family history, age and ethnic background puts them at increased risk.  They are also more likely to get Type 2 diabetes if they are overweight.  It starts gradually, usually later in life, and it can be years before they realise they have it. Type 2 diabetes is treated with a healthy diet and increased physical activity.  In addition, tablets and/or insulin can be required.
  • For more information on reporting on diabetes, download our journalists’ guide: www.diabetes.org.uk/journalists-guide

About the Tesco National Charity Partnership:

  • Diabetes UK is Tesco’s National Charity Partner. Tesco and Diabetes UK have already raised £12 million and hope to raise even more funds to create healthier communities for everyone affected by, and at risk of, diabetes.
  • The partnership aims to support the 3.8 million people who have to live with diabetes every day; and help hundreds of thousands of people take action to reduce their risk of Type 2 diabetes.  It will also see investment into ground-breaking research.
  • Since 1988, Tesco has chosen a different charity partner to be the focus for colleague fundraising.
  • The partnership will be supported by a range of product promotions in Tesco stores and online which will carry a donation to Diabetes UK. Tesco Bank will continue to donate 0.0125p for every transaction made at ATM’s at Tesco stores. Clubcard customers can also donate their points to Diabetes UK.
  • For more information on how the partnership between Tesco and Diabetes UK aims to create a healthier future for people affected by diabetes or at risk of developing it, go to www.diabetes.org.uk/tesco

For more information please contact the Tesco Press Office on
01992 644645
We are a team of over 500,000 people in 12 markets dedicated to providing the most compelling offer to our customers.

Sainsbury’s launches first and exclusive Freedom Food-labelled rainbow trout farmed in Loch Etive

LONDON, 2014-7-9 — /EPR Retail News/ — Good news for ethical shoppers as the first and exclusive Freedom Food-labelled rainbow trout launches today. Available in 400 stores, Loch Trout Fillets are available from the fresh counter and in the aisle.

The fish are farmed in Loch Etive, a sea loch on the west coast of Scotland, resulting in a distinct flavour and texture. Customers can find Scottish Loch Trout Fillets pre-packed fish aisle or on the counter, all carrying the Freedom Food label.  This is assurance the fish have been reared to the RSPCA’s strict welfare standards throughout the supply chain.

Ally Dingwall, Sainsbury’s Aquaculture & Fisheries Manager said: “Animal welfare and where food comes from is of huge importance to our customers.  So we’re delighted that our fresh Loch trout now carries the Freedom Food label, independently marking it as higher welfare.”

This is good news for consumers as increasing numbers of people choose fish on health grounds, yet worry about sustainability and animal welfare.1 Trout is one of the fish recommended in this year’s Switch the Fish campaign, Sainsbury’s campaign to encourage consumers to try alternative species of fish, in addition to the popular ‘Big 5’ which make up 80% of fish sales in the UK.

Recent demand for more sustainable fish – and the success of Freedom Food labelled farmed salmon – has led producers to ask the RSPCA to develop welfare standards for trout which were published earlier this year.

John Avizienius, who wrote the standards for the RSPCA, said: “The RSPCA welfare standards address all of the important areas in the life of the fish, and it has been very interesting working together with producers to produce a set of standards which will improve the welfare of the fish.”

Dawn Fresh are the first producer to adopt the RSPCA welfare standards for trout, Richard Hopewell fish health manager said: “Farming under the Freedom Food scheme with the RSPCA welfare standards raises the game – it makes us better fish farmers.”

The RSPCA first published welfare standards for farmed rainbow trout in February 2014. The standards cover the whole life-cycle of the fish – from the egg all the way through to slaughter, including all handling and transport.

Jeremy Cooper, Chief Executive of Freedom Food said, “This is a major milestone for trout welfare – for the first time, consumers can choose trout from a certified higher-welfare source and we are delighted to have worked with Sainsbury’s and Dawn Fresh to help make this happen. We hope this will encourage more producers to farm to RSPCA welfare standards”

Quick and easy to prepare, Rainbow trout is also really versatile and can be used like salmon in recipes such as Risotto with trout and kale.

Sainsbury’s already sells more Freedom Food-labelled products than any other supermarket.  This new addition is a landmark for trout welfare.

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Sainsbury’s launches first and exclusive Freedom Food-labelled rainbow trout farmed in Loch Etive

Sainsbury’s launches first and exclusive Freedom Food-labelled rainbow trout farmed in Loch Etive

AHOLD REPURCHASED 1,424,122 AHOLD COMMON SHARES FOR € 19.61 MILLION BETWEEN JUNE 30 AND JULY 4, 2014

Zaandam, the Netherlands, 2014-7-9 — /EPR Retail News/ — Ahold has repurchased 1,424,122 Ahold common shares in the period from June 30, 2014 up to and including July 4, 2014.

The shares were repurchased at an average price of € 13.7675 per share for a total consideration of € 19.61 million. These repurchases were made as part of the € 500 million share buyback program announced on February 28, 2013 as increased by € 1.5 billion to a total amount of € 2 billion announced on June 4, 2013.

The total number of shares repurchased under this program up to and including to June 27, last as mentioned in the press released of June 30, 2014 was 118’972’673 common shares instead of (the manifest erroneous number of) 118’989’051. All other numbers in the press release of June 30, 2014 are correct.

The total number of shares repurchased under this program to date is 120,396,795 common shares for a total consideration of € 1,563.81 million.

During the share buyback program, Ahold publishes a press release every Monday with a weekly update. Click here to view all the relevant information of these these weekly updates. Separate weekly press releases are available upon request. Please send an email to communications@ahold.com if you would like to receive one or more of these weekly releases.

Wegmans Food Markets reached the goal of making all sushi in its stores strictly made from ingredients that contain no gluten

ROCHESTER, NY, 2014-7-9 — /EPR Retail News/ — In one generation, sushi has made it in America. It’s the go-to snack, light meal, or party appetizer for millions. Yet people who must avoid gluten have approached sushi with caution, even though many key ingredients like rice, vegetables, and seafood don’t naturally contain gluten. The problem has been with other ingredients, such as soy sauce, traditionally made from fermented wheat and soy. About two years ago, Wegmans Food Markets began working toward making all sushi varieties sold in its stores strictly from ingredients that contain no gluten – including the soy sauce packets tucked into the sushi trays. This month, they reached that goal.

“We and our supplier partners worked hard for this and it came together only over time,” said Chef John Emerson, Wegmans director of sushi and Asian cuisine who spearheaded the effort. “But now, we’re proud to say that we offer sushi of outstanding taste and freshness that also happens to be made with no gluten-containing ingredients.”

Signs at sushi bars will say, “Made with No Gluten-Containing Ingredients.” Wegmans takes care to keep a distinction between prepared foods made from ingredients that have no gluten in them versus grocery items labeled ‘gluten-free,’ which customers typically buy in sealed containers.

“Our stores make all kinds of foods fresh each day,” said Wegmans Nutritionist Trish Kazacos, RD, who writes articles about living gluten-free for the Wegmans blog, Fresh Stories. “We follow normal good retailing practices for all of our prepared foods, but there is the potential for inadvertent cross-contact with gluten.  Some customers are comfortable with that risk, others are not. Our job is to offer clear information so they can make the choice that’s right for them personally.”

About 3 million Americans (or one percent of the population) have celiac disease. For those with celiac, eating foods that contain gluten – a protein in wheat, rye and barley- triggers an autoimmune response that damages the lining of the small intestine. An even larger segment of the population (up to 10 percent) has a non-celiac form of gluten sensitivity that can cause digestive discomforts and other symptoms. The only treatment for both groups is to avoid gluten completely.

“People around the world love sushi, and the fact that many sushi ingredients don’t contain gluten to begin with got us thinking about eliminating gluten from our ingredient list period – for all of the varieties we make. If we succeeded, sushi could be on the menu for a new set of folks,” said Emerson. His team reached a major milestone along the way about year ago when Kikkoman, the international company best known for its soy sauce, developed a gluten-free soy sauce for use only in sushi bars at Wegmans stores. “We needed just the right balance of sweetness and saltiness to complement our sushi. It took some fine tuning, but the day came when we tasted a batch with a flavor that topped them all – and it was gluten-free!”  More on this milestone. (Wegmans also sells gluten-free Kikkoman soy sauce in grocery aisles, but that item is made from a different recipe.)

There were still other milestones to reach in the campaign to eliminate gluten from sushi. “Reformulating other sauces went smoothly, but the tempura batter was really tough,” Emerson said. “Shrimp tempura rolls and coconut shrimp rolls are top favorites with lots of customers. People adore that silky-light crunch that tempura gets when the batter is deep-fried, but that texture is very hard to duplicate in a batter with no gluten. We selected a Japanese company with a plant in California to work with us, we tested dozens of different batters, and one day the perfect one arrived. It had that wonderful crunch – and no gluten!”

Sushi bars have been a staple in Wegmans stores since 1996, but in 2011, Wegmans opened a new chapter in the sushi story by sending a team led by Emerson to Japan to learn best practices in the sushi capital of the world. After that trip, Wegmans sought new suppliers for the two most basic ingredients in sushi, short grain rice and seasoned vinegar. Marukan, a 350-year-old Japanese firm, developed a custom blend of its seasoned rice vinegar for Wegmans, with the right balance of sweet, sour and salty taste notes. It is gluten free. Tamaki Gold, a California rice grower, began supplying Wegmans with freshly milled rice short-grain each month. The company also upgraded its equipment, tools and staff education in its quest to produce sushi-house quality fare.

Since the Japan trip, Wegmans chefs have created new vegetable and cooked seafood combinations to please customer palates. Two newcomers at the sushi bar: The Margarita Roll and the Kale-Elujah Roll. “The Margarita roll is made from kampachi fish, a sustainable variety from Hawaii that tastes like tuna, plus bay scallops in a ceviche-like lime dressing with agave and a bit of fleur de sel. Tequila is made from agave, so this sushi’s flavors remind you of a cool Margarita in a salt-rimmed glass!” said Emerson. The Kale-Elujah Roll speaks to those who love eating healthfully. “It has really taken off. It’s made with brown rice, chia, quinoa, kale, and sesame, all rolled up into the Kale-Elujah roll.”

Sushi comes in many shapes and sizes, and each type has its own name.  If you’d like to brush up on your sushi knowledge, check out the Sushi 101 section of Wegmans.com.  Enjoy!

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Wegmans Food Markets, Inc. is an 84-store supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, Maryland, and Massachusetts. The family-owned company, founded in 1916, is recognized as an industry leader and innovator. Wegmans has been named one of the ‘100 Best Companies to Work For’ by FORTUNE magazine for 17 consecutive years. In 2014, Wegmans ranked #12 on the list.

Contact Information:  Jo Natale, director of media relations, 585-429-3627

Howard County Department of Recreation & Parks, Columbia Association and Wegmans store in Columbia partner to introduce Howard County’s Nature Quest and the Wegmans Passport to Family Wellness

COLUMBIA, MD, 2014-7-9 — /EPR Retail News/ — Howard County Department of Recreation & Parks (HCRP), Columbia Association (CA) and Wegmans store in Columbia are teaming up to introduce Howard County’s Nature Quest and the Wegmans Passport to Family Wellness, an initiative to encourage usage of the county’s excellent trail network.

First developed by Wegmans in 2005, the Passport to Family Wellness is a pocket-sized booklet that guides participants through 16 trails in the county — eight managed by HCRP and eight managed by CA. Participants record their progress by making a rubbing in their passport of a trail marker located at a designated point on each trail.

“Howard County has some of the best parks and trails in the country,” said Howard County Executive Ken Ulman. “With this passport, families can have some fun together on this nature quest, earn some great prizes and maybe even get a little healthier and fitter in the process. I appreciate the participation of Wegmans and the Columbia Association in this effort.”

“The expansive system of trails in Howard County is part of why this area is such a great place for those who live, work and play here,” said Columbia Association President/CEO Milton W. Matthews. “We encourage people to get out, explore and be active, and the Nature Quest and the Wegmans Passport to Family Wellness will give them an excellent opportunity. I thank Howard County and Wegmans for their partnership in this initiative.”

HCRP and CA will offer free giveaways to those who walk all eight of their respective trails. For those who walk six trails, Wegmans will offer a coupon for a free towards a Wegmans product. Participants who walk all 16 trails will be entered into a raffle for a $100 Wegmans Gift Card or a Gift Certificate from HCRP or CA.

“We’re committed to helping our neighbors and our own employees live healthier, better lives,” said Krystal Register, Wegmans Nutritionist based at the Columbia store. “It’s the reason we created this program, which is now a ‘passport’ for dozens of trails in many of the communities where we have stores. We hope it inspires friends and families to get moving right here on the beautiful trails in Howard County.”

The free Passports are available beginning Tuesday, July 1 at the following locations:

  • HCRP Headquarters, 7120 Oakland Mills Road, Columbia
  • Roger Carter Community Center, 3000 Milltowne Drive, Ellicott City
  • Gary J. Arthur Community Center, 2400 Route 97, Cooksville
  • North Laurel Community Center, 9411 Whiskey Bottom Road, Laurel
  • Robinson Nature Center, 6692 Cedar Lane, Columbia
  • Meadowbrook Athletic Complex, 5001 Meadowbrook Lane, Ellicott City
  • CA Headquarters, 10221 Wincopin Circle #100, Columbia
  • Wegmans, 8855 McGaw Road, Columbia.

July is Recreation & Parks Month and the Passport to Family Wellness kicks off this nationwide month of awareness to promote active lifestyles in parks and facilities here in Howard County. Throughout the month of July, HCRP will be offering several free events; to learn more about these events, visit www.howardcountymd.gov/recandparksmonth.

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Wegmans Food Markets, Inc. is an 84-store supermarket chain with stores in New York, Pennsylvania, New Jersey, Virginia, Maryland, and Massachusetts. The family-owned company, founded in 1916, is recognized as an industry leader and innovator. Wegmans has been named one of the ‘100 Best Companies to Work For’ by FORTUNE magazine for 17 consecutive years. In 2014, Wegmans ranked #12 on the list.

Contact Information:  

John R. Byrd, Director, Department of Recreation & Parks, 410-313-4640
David Greisman, Media Relations Specialist, Columbia Association, 410-423-4103
Jo Natale, Director of Media Relations, Wegmans, 585-429-3627

Morrisons became the first supermarket to launch free app for cattle farmers aimed at simplifying livestock management

Bradford, England, 2014-7-9 — /EPR Retail News/ — Morrisons today becomes the first supermarket to launch a free app for cattle farmers aimed at simplifying livestock management.

‘Morrisons Farming App’ is aimed primarily at beef producers and is available on all Android devices to download free of charge from today and will also be available on Apple devices very soon.

The app includes a live link to the British Cattle Movement Service so all cattle data from multiple holdings can be viewed instantly at any time – even when the phone signal is poor. The free technology also enables the registering of cattle births, deaths and movements as well as allowing farmers to arrange animals by pen or field for easy reference.

The app also aims to simplify the process of ordering new and replacement ear tags with a live link to Caisley tags and extensive options for conventional, Electronic Identification (EID) and DNA tags, all at a discounted price.

The development of the new technology for the farming community can help improve food safety and animal traceability as well as animal breeding and husbandry. Morrisons Agriculture Programme has worked with the NFU in the past to emphasise the need for new technology to help improve communication between farmers, processors and retailers.

For suppliers to Morrisons Woodheads sites the App can also automatically generate the Food Chain Information Declaration – the information that must be provided by all livestock keepers on the cattle they send for slaughter and required by all Woodheads abattoirs.

Morrisons will continue to further develop the technology and add extra features to extend the app to lamb and pig producers, as well as adding more features to provide useful data and make administrative processes more efficient.

Andrew Loftus, Morrisons Agriculture Manager said: “We want to help ease the burden on farmers by ensuring better information is available at the touch of a button to aid them when making decisions about their businesses.

“The launch of the app builds on the website we’ve also created to provide suppliers of beef, pork and lamb with unrivalled and immediate feedback on their consignments.“ Meurig Raymond, President of the NFU said: “Adopting technology like this new app is key to farming’s future and I’m delighted that Morrisons is making sure that it’s available to all beef producers.”

FamilyMart’s largest shareholder ITOCHU Corporation purchased additional shares of FamilyMart in order to further strengthen the relationship between the two companies

Tokyo, 2014-7-9 — /EPR Retail News/ — Notice is hereby provided that on July 4, 2014, FamilyMart received notification from its largest shareholder, ITOCHU Corporation, that ITOCHU had decided to purchase additional shares of FamilyMart in order to further strengthen the relationship between the two companies.

1. Overview of additional share purchase

(1) Period of purchase: July 7, 2014 to March 31, 2015

(2) Number of shares to be purchased: 5,070,300 shares

(3) Percentage of total voting rights associated with shares to be purchased: 5.35%

2. FamilyMart’s Opinion of the Additional Purchase of Its Shares

FamilyMart and its largest shareholder, ITOCHU, have established a cooperative relationship through such activities as joint product development, store development, overseas business development, and dispatching of human resources. The two companies have developed a mutual understanding of each other’s business and a strong relationship of trust. As a result of discussions between the two companies, and following consideration and examination of the Basic Policy Regarding the Control of Kabushiki Kaisha(joint stock corporations), at a meeting held today, the Board of Directors approved a resolution to support the further strengthening of the relationship between the two companies through the purchase by ITOCHU of additional FamilyMart shares.

The two companies have agreed on the following specific initiatives to further strengthen their relationship. (1) By the end of March 2015, ITOCHU will increase its share of FamilyMart voting rights from the current level of 31.7% (direct, 31.6%; indirect, 0.1%; as of February 28, 2014) to 37%. (2) In FamilyMart’s domestic convenience store operations, business and logistics transactions with the ITOCHU Group will be fundamentally reevaluated and steps will be taken to expand FamilyMart’s earnings from the viewpoint of overall optimization. (3) In FamilyMart’s overseas convenience store operations, to strengthen competitiveness in existing and new regions, investment in logistics infrastructure operations will be bolstered. (4) In new businesses, steps will be taken to expand Internet and financial services businesses.

In the future, based on its strong relationship of trust with ITOCHU, FamilyMart will work to increase returns for stakeholders, including shareholders, franchisees, and suppliers. FamilyMart would like to ask for the continued understanding and support of its stakeholders.

Reference: Overview of Purchaser of Shares

(1) Name of purchaser: ITOCHU Corporation
(2) Location of purchaser: 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo
(3) Name of representative: Masahiro Okafuji, President & Chief Executive Officer
(4) Contact: ITOCHU Corporation, Corporate Communications Division 5-1, Kita-Aoyama 2-chome, Minato-ku, Tokyo TEL 03-3497-7291
(5) Purchase of FamilyMart’s shares will be made on the market until the shareholding ratio, including shares currently held, reaches 37% (after exclusion of treasury stock).
* Current number of shares held (as of February 28, 2014): 29,941,200 shares (shareholding ratio: 30.65%)

CBRE Group analysis: U.S. commercial real estate market improved strongly across all property types in Q2 2014

Los Angeles, 2014-7-9 — /EPR Retail News/ — The U.S. commercial real estate market improved strongly across all property types in the second quarter (Q2) of 2014, according to the latest analysis from CBRE Group, Inc.

  • The office vacancy rate declined by 30 basis points (bps) to reach 14.5% in Q2 2014. This was an improvement for the national office market following a 10 bps decline in the vacancy rate in Q1 2014.
  • In Q2 2014, national industrial availability1 decreased by 30 bps from Q1 2014, to 10.8%.
  • The retail availability rate declined 11.7%, down 20 bps compared to Q1 2014.
  • Demand for the nation’s apartment buildings continued to grow with vacancy of 4.4% in Q2 2014.

“Commercial real estate leasing activity in Q2 2014 picked up from the weather-affected levels of the prior quarter,” said Jon Southard, Managing Director of CBRE’s Econometric Advisors group. “The pace of demand can finally be described as good–without the caveat of ‘for this recovery.’”

Office Market
In Q2 2014, the suburbs edged out downtown submarkets with the suburban vacancy rate declining by 40 bps to reach 15.9% while the downtown vacancy rate fell by 30 bps to reach 11.8%. A majority of markets continued to see their vacancy rates fall during the quarter, with rates falling in 45 of the 63 office markets tracked while rising in 15 and remaining unchanged in three.

Although improvement continue to broaden across markets, those with heavy concentrations of tech and energy companies were once again among the top performers in the second quarter. St. Louis set the pace with a vacancy rate decline of 210 bps, followed by Raleigh (-170 bps), (-120 bps), Oklahoma City (-120 bps), San Jose (-100 bps) and Orange County (-100 bps). While reaming well above the pre-crisis levels, vacancies continue to decline rapidly in markets such as Las Vegas, Riverside and Tucson, whose economies are recovering from the housing crisis. Vacancy rates in all three markets fell by 90 bps in the second quarter. Of the 15 markets with rising vacancies, only in two did the vacancy rate rise by more than 100 bps: Albuquerque (+150 bps) and Richmond (+150 bps).

“The office recovery continues to advance with the lack of development in most markets as well as strength in private-sector payrolls continuing to support occupancy growth,“ said Mr. Southard. “Continued private sector job growth will be key for further office market improvement and the strong jobs gains reported for June is an encouraging sign.”

CBRE’s preliminary estimate is for the U.S. office market vacancy rate to fall to 14.4% by year end.

Industrial Market
With the availability rate falling to 10.8%, the industrial market has now seen its recovery stretch to 16 consecutive quarters, and the current level is 370 bps below the cycle high.

A majority of markets continued to improve during Q2 2014, with 40 reporting declines in availability while nine remained unchanged and 12 showed increases.

The declines in availability were led by Fort Lauderdale (-110 bps), Las Vegas, Nashville, and Atlanta (each with 100-bps decreases). The decrease in Nashville more than erases the 70-bps increase reported during the first quarter. Large markets reporting healthy declines in Q2 2014 were Philadelphia (-60 bps), Boston (-40 bps), Los Angeles (-40 bps), Detroit (-40 bps), and Chicago—the nation’s largest industrial market—fell by 30 bps.

“The improvement in the nation’s industrial sector continues as the economic expansion matures and gains more traction,“ noted Mr. Southard. “Following a challenging start to 2014 for the U.S. economy, we foresee more robust growth going forward as business conditions remain fundamentally healthy.”

CBRE’s preliminary estimate is that the national industrial availability rate will end 2014 at 10.7%.

Retail Market
Q2 2014’s retail availability rate of 11.7% was down 20 bps compared to Q1 2014 and now stands 150 bps below the post-recession peak of 13.2%. 41 markets recorded declining availability rates in the second quarter compared to Q1 2014; 22 markets recorded flat or increasing rates.

Tampa, Raleigh, Philadelphia and Charlotte recorded declines in availability rates of at or over 60 bps in Q2 2014. Markets which recorded rising availability rates were Cleveland, St. Louis and Salt Lake City; each of these markets was 40 or more bps higher than in Q1 2014.

CBRE’s preliminary estimate is for the availability rate for neighborhood and community shopping centers to decline to 11.0% in 2014.

Apartment Market
Preliminary data indicates that apartment demand continued to grow in Q2 2014, with the vacancy rate of 4.4%, a 20-bps drop compared to a year ago. The market remains tight by historical standards, with the vacancy rate below the long-term norm. The national apartment demand is now growing at a rate of almost 270,000 units or 1.9% on an annual basis, a pace that is stronger than what the market has seen historically, as well as during the last three years.

Vacancy rates declined in 38 of the 63 markets in CBRE’s coverage. Markets with the biggest year-over-year declines in vacancy (80 bps or more) included Albuquerque, Jacksonville, Sacramento, Riverside, St. Louis, Fort Lauderdale, Atlanta, Cleveland, Las Vegas, Houston, Orange County and Ventura. The markets with the largest year-over-year increases in vacancy (50 bps or more) included Greensboro, Norfolk, Salt Lake City, San Antonio, Birmingham, and Greenville. Markets with the lowest vacancy rates (at or below 3%) included Oakland, San Jose, Portland, Minneapolis, Miami, Ventura, Boston, Providence, Newark, and Pittsburgh.

Effective rent growth continued to improve last quarter, but is still remaining in the 2.5-3% per year range in most areas.

CBRE’s preliminary estimate is that the U.S. multi-housing market vacancy rate will average 4.7% in 2014.

1 Availability is space that is actively being marketed and available for tenant build-out within 12 months.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.