CBRE: Vacant office space in the U.S. declined by 10 basis points (bps) during the third quarter of 2017

Suburbs Continue to Show Strongest Decreases

Los Angeles, 2017-Oct-11 — /EPR Retail News/ — Vacant office space in the U.S. declined by 10 basis points (bps) during the third quarter of 2017 (Q3 2017) dropping to 12.9 percent, according to the latest analysis from CBRE. Continuing a recent pattern, suburban office markets continued to set the pace for declines.

The vacancy rate in suburban markets decreased 20 bps, to 14.1 percent, while downtown vacancy dipped to 10 bps to 10.6 percent. Vacancy continued to fall in a majority of U.S. office markets, and the national office vacancy rate remains near its post-recession low.

”The slow, steady improvement in the office market continued in the third quarter after a second quarter pause. Demand remains positive but modest,” said Jeffrey Havsy, Americas’ chief economist for CBRE.

The largest metro-area declines were recorded in Trenton (220 bps), Las Vegas (140 bps) and Phoenix (110 bps). Tucson, Detroit, Memphis, Stamford and Richmond, each declined by 80 bps or more. In the past four quarters, the vacancy tightening has been found in mid-sized markets located predominately across the Sun Belt, including Tucson, Las Vegas, Albuquerque, Louisville, Orlando, Richmond, Detroit, Sacramento, Phoenix, Memphis and Jacksonville.

“September’s job report showed continued growth in office-using jobs and that growth is expected to lead to continued but relatively modest positive absorption. The supply pipeline in certain markets has started to increase and this may lead to a slowing of the vacancy decline in early 2018,” added Mr. Havsy.

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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Media Contacts:

Robert McGrath
Senior Director
+1 212 9848267

Source: CBRE

CBRE: Vacant office space in the U.S. remained unchanged during the Q2 2017 at 13 percent

Los Angeles, 2017-Jul-12 — /EPR Retail News/ — Vacant office space in the U.S. remained unchanged during the second quarter of 2017 (Q2 2017) at 13 percent. The steady performance was attributable to a balance of supply and demand, according to the latest analysis from CBRE.

The vacancy rate in suburban markets increased by 10 bps, to 14.3 percent, while downtown vacancy remained steady at 10.7 percent. Vacancy continued to fall in an about half of the U.S. office markets, and the national office vacancy rate remains near its post-recession low.

”The office market remained in equilibrium during the second quarter with supply and demand roughly in balance,” said Jeffrey Havsy, Americas’ chief economist for CBRE. “Absorption was in the 7 million sq. ft. range for three out of the last four quarters while supply growth has been between 10.5 million and 11.8 million sq. ft. the past four quarters. This steadiness has kept the overall vacancy rate near 13 percent over the past year.”

The largest quarterly declines in vacancy were in Columbus (170 bps), Las Vegas (160 bps) and Albuquerque (130 bps). Louisville, Jacksonville, Norfolk, Honolulu, Orlando, Cincinnati and Atlanta each declined by 60 bps or more. Over the past four quarters, market conditions have tightened notably in mid-sized markets—including Tucson, Orlando, Las Vegas, Richmond, Sacramento, Albuquerque, Kansas City, Raleigh, West Palm Beach, Detroit and St. Louis.

“The market is in a very sustainable place with neither supply nor demand overheated, which bodes well for the health of the market over the next few quarters,” added Mr. Havsy.

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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:

Robert McGrath
212.984.8267
robert.mcgrath@cbre.com

SOURCE: CBRE Group, Inc.

CBRE: Vacant space in the U.S. office market rose to 13.0 percent during the Q1 2017

Los Angeles, 2017-Apr-10 — /EPR Retail News/ — Vacant space in the U.S. office market rose modestly during the first quarter of 2017 (Q1 2017) to 13.0 percent. The 10 basis points (bps) increase was attributable to increased office supply, according to the latest analysis from CBRE Group, Inc.

The vacancy rate in suburban markets increased by 10 bps, to 14.2%, while downtown vacancy also increased by 10 bps, to 10.7%. Despite the quarter’s overall increase, vacancy continued to fall in nearly half of the U.S. office markets, and the national office vacancy rate remains near its post-recession low.

”The office market appears to have reached equilibrium and the strong economy, including solid employment numbers, is likely to help offset rising supply,” said Jeffrey Havsy, Americas’ chief economist for CBRE.

The largest quarterly declines in vacancy were recorded in Kansas City (150 bps), Wilmington, DE (120 bps) and Tulsa (100 bps). Albuquerque, Tucson, Orlando, Las Vegas and Richmond, each declined by 70 bps or more. Among the markets with increased vacancies in the quarter was Nashville, which recorded a 250-bps rise in vacancy due to new construction. Cincinnati, Fort Worth, Salt Lake City, Houston reported rate increases of 80 bps or more.

“Several markets are likely to continue to soften, but the overall office market remains relatively healthy,” noted Mr. Havsy.

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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:
Robert McGrath
Senior Director, Global Media Relations
+1 212 9848267

Source:  CBRE Group, Inc.

CBRE: Availability of U.S. industrial space declined by 20 bps to 8.4 percent in the third quarter from the second

Los Angeles, 2016-Oct-13 — /EPR Retail News/ — The U.S. industrial-property market continued its record run of improvement in the third quarter, given that availability of industrial space declined for the 26th consecutive quarter, according to the latest analysis from CBRE Group, Inc.

Availability of industrial space across markets tracked by CBRE declined by 20 basis points (bps) to 8.4 percent in the third quarter from the second, extending the longest stretch of consecutive quarterly declines since CBRE began tracking the figures in 1989. Forty-five markets registered declines in availability in the quarter, and 10 reported increases likely due to completion of new buildings.

The industrial market continues to draw momentum from e-commerce, as hefty flows of goods stream into the U.S., the world’s largest consumer economy, and online sales claim a steadily growing portion of overall retail sales. Industrial users in turn have embarked on a supply-chain arms race of sorts by adding more distribution space, be it for big-box distribution centers, last-mile facilities nearest population centers or reverse-logistics facilities to handle returns.

“The industrial market is running full-throttle,” said Jeffrey Havsy, CBRE’s Chief Economist in the Americas. “The pace of demand has been running nearly double that of supply, and vacancy continues to decline in big chunks. Demand is being driven by strong growth in e-commerce, a healthy auto industry and some re-shoring of certain types of manufacturing.”

Among the markets that showed the largest year-over-year declines in availability in the third quarter are Memphis (down 260 bps), Detroit (down 250), New York City (down 240), Tampa (down 200), Boston (down 180) and Philadelphia (150). Those that registered increases in availability, often due to new construction, include Denver, Houston, Cincinnati and California’s Riverside market.

Availability as referenced by CBRE encompasses all space available for lease, including space currently occupied but otherwise listed for use by other tenants. This is in contrast to vacancy, which denotes only empty space. Several markets now are posting their lowest availability in decades, including Memphis, Los Angeles, Pittsburgh, Raleigh, South Central Pennsylvania and Orange County, Calif.

CBRE expects the nationwide decline in availability of industrial space to eventually slow or reverse as new buildings are completed and begin to narrow the gap between demand and supply. That often benefits users by providing more options for space to lease and tempering lease-rate increases. CBRE anticipates that developers in the U.S. will deliver 173 million square feet of industrial space in 2016 and 172 million in 2017 after delivering 158 million in 2015.

“The industrial market is forecast to remain healthy for the next several quarters as the fundamentals move closer to equilibrium,” Mr. Havsy said.

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 (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:
Robert McGrath
Senior Director, Global Media Relations
+1 212 9848267

Source:  CBRE Group, Inc.

CBRE: Vacant space in the U.S. office market held steady during the third quarter of 2016

Los Angeles, 2016-Oct-11 — /EPR Retail News/ — Vacant space in the U.S. office market held steady during the third quarter of 2016 (Q3 2016), at 13.1 percent, according to the latest analysis from CBRE Group, Inc. The national office vacancy rate remained at the lowest level since 2008, with a 30 basis points (bps) decline over the past year.

The office market is being helped by steady demand for space and limited new construction. ”Firms are adding space, but at a more modest pace than in recent years, reflecting slower overall job creation,“ said Jeffrey Havsy, Americas’ chief economist for CBRE. “With supply and demand relatively in balance, vacancy has plateaued for the moment, but the office market should remain healthy as new construction deliveries slow over the next 6-8 quarters.”

Continuing a recent pattern, the suburbs outperformed downtowns, with vacancy falling 10 bps, to 14.3 percent in the suburbs, but increasing 20 bps, to 10.7 percent in downtowns. After lagging downtowns for much of the recovery, the suburbs have now performed better than downtowns for four straight quarters.

“Despite their rumored demise, the suburbs continue to perform soundly. This is especially true of those locations that offer, a live, work, play dynamic and have good transportation access,“ noted Mr. Havsy. “The suburbs have been painted with a negative brushstroke, but that labeling masks the diversity among the various submarkets. Those locations that offer appropriate amenities, have good access and offer modern facilities continue to lease well.”

A majority of U.S. markets saw improved conditions during Q3 2016, with vacancy declining in 37 of 63 office markets, rising in 22, and remaining unchanged in four. The largest quarterly declines in vacancy were recorded in Tucson (170 bps), Cincinnati (130 bps) and Raleigh (120 bps). West Palm Beach, Newark, Las Vegas, Albany, Riverside and Sacramento each declined by 90 bps or more.

Mid-sized markets have been the best performers over the past year. Compared with Q3 2015, Tucson, St. Louis, Raleigh, Riverside, Oakland, Sacramento, Cincinnati and Tampa have experienced the sharpest declines in vacancy.

The nation’s lowest vacancy rates in Q3 2016 were in Nashville (5.5 percent), San Francisco (6.7 percent), Raleigh (8 percent), Austin (8.1percent), Seattle (8.6 percent), Oakland (8.7 percent), San Jose (8.9 percent) and Pittsburgh (9.2 percent).

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 (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:
Robert McGrath
Senior Director, Global Media Relations
+1 212 9848267

Source:  CBRE Group, Inc.

CBRE: Vacancy in the U.S. office market increased to 13.2% during first quarter of 2016

Los Angeles, CA, 2016-Apr-13 — /EPR Retail News/ — Vacancy in the U.S. office market inched up by 10 basis points (bps) during the first quarter of 2016 (Q1 2016), rising to 13.2%, according to the latest analysis from CBRE Group, Inc. Even with the increase, the national office vacancy rate remains at the lowest level since 2008.

Despite the slight increase, vacancy continued to improve in the majority of U.S. markets, with rates falling in 33 markets, rising in 25, and remaining unchanged in five. Suburban vacancy remained at 14.7% while downtown vacancy increased by 10 bps, to 10.4%. The overall national office vacancy rate has fallen 70 bps over the past four quarters.

“The office market paused in Q1 2016 after several strong quarters as economic uncertainty and market volatility weighed on occupancy decisions,” said Jeffrey Havsy, Americas’ chief economist for CBRE. “Despite this, demand for space remains healthy fueled by steady job growth, and we expect the market to continue to strengthen at a modest pace the remainder of the year.”

Detroit recorded one of the largest quarterly declines of 130 bps, while Nashville, Louisville, Columbus, Cleveland, Milwaukee, San Diego and Seattle declined by 60 bps or more. Overall, markets in California and Southeast saw the greatest improvement in the last four quarters. Among these were San Jose, Nashville, Oakland, Detroit, Jacksonville, Orlando and Atlanta. The nation’s lowest vacancy rates in Q1 2016 were in San Francisco (6.3%), Nashville (6.6), Austin (7.7%), Albany (8.0%), San Jose and Raleigh (8.7%).

The slight rise in the national vacancy rate was fueled by significant new supply coming to certain markets including Boston, Washington D.C., Dallas and Orange County. Compounding that issue, Washington had negative absorption and Dallas only modest absorption, trailing this new supply. However, vacancy rates are higher than they were a year ago in just 13 markets—including Houston, Trenton, Newark, Richmond, Pittsburgh and Denver.

“We expect the U.S. office market to improve in 2016 as the U.S. economy continues to expand, moving closer to full employment and driving demand for office space,” noted Mr. Havsy. “Office demand is expected to outpace new supply in the next two years, further tightening the vacancy rate and keeping rent growth above inflation in a majority of the U.S. office markets.”

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 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.

CBRE: U.S. commercial real estate market shows continued healthy demand during Q4 2015

Six Year Trend of Declining Office Vacancy and Industrial Availability Continues

Los Angeles, 2016-1-12 — /EPR Retail News/ — The U.S. commercial real estate market shows continued healthy demand across all property types during the fourth quarter of 2015 (Q4 2015), according to the latest analysis from CBRE Group, Inc.

In Q4 2015:

  • The office vacancy rate declined 20 basis points (bps) to13.2%. The vacancy rate has not shown an increase in 23 quarters.
  • The industrial availability* rate continued to decline, falling by 20 bps to 9.4%. Industrial availability has also not risen for 23 consecutive quarters.
  • The retail availability rate declined 10 bps to 11.2%, 210 bps below its post-recession peak of 13.3%.
  • Demand for the nation’s apartments remained strong in Q4 2015 with vacancy at 4.6%.

“U.S. commercial real estate had another solid quarter with vacancy rates declining for the office, industrial and retail sectors due to steady absorption and relatively limited supply,” said Jeffrey Havsy, Americas chief economist for CBRE. “Commercial real estate remains in a ‘goldilocks’ state with both demand and supply neither too hot nor too cold. This slow, stable improvement is extremely healthy for the sector, but is at a pace that is sustainable for 2016.”

Office Market
The Q4 2015 office vacancy rate of 13.2% is an 80-bps drop from a year ago. There has been no increase in the national office vacancy rate since the end of Great Recession—23 consecutive quarters. Vacancy rates continued to decline in both suburban and downtown markets in Q4, with the suburban rate falling by 30 bps to 14.7% while downtown dropped 10 bps to 10.3%s—the lowest rate since 2008.

San Jose recorded one of the largest quarterly declines (170 bps), while Chicago, Raleigh and Phoenix declined by 80 bps or more. Overall, markets in California and the South saw the greatest improvement in 2015. Besides San Jose and Raleigh, these include Oakland, Jacksonville, Miami, Atlanta, Sacramento, Orlando and Tampa. The nation’s lowest vacancy rates in Q4 2015 were recorded in San Francisco (6.3%), Nashville (7.5), Austin (7.6%), Albany (8.1%) and San Jose (8.2%).

“Economic fundamentals remain strong and point to continued U.S. office expansion in 2016, supported by a strong domestic job market. The Federal Reserve’s decision to raise interest rates most likely will not affect capital flows into the commercial real estate sector” said Mr. Havsy. ”Recent changes in the Foreign Investment in Real Property Tax Act, and the extension of the EB-5 program should help to increase the flow of foreign capital into U.S. commercial real estate, while strong economic fundamentals will maintain asset valuations despite rising interest rates.”

Industrial Market
The Q4 2015 industrial availability rate of 9.4% underscores the full recovery in the sector that began earlier in the year and continued the move into expansionary territory for this cycle. 23 consecutive quarters of falling availability is the longest stretch since CBRE began tracking the national market in 1989. Thirty-five markets out of 57 industrial markets reported declining availability in Q4. Detroit led the declines with a 120 bps drop. Significant availability declines were also recorded in Dallas and New York (each of which fell 70 bps) and Atlanta (which declined 50 bps).

“The majority of markets continue to improve and few are even experiencing lower levels of available space than has been seen in decades,” noted Mr. Havsy. “Such constraints will continue to provide upward pressure on rent levels, as demand-side fundamentals remain quite favorable for industrial users.”

Retail Market
The Q4 2015 retail availability rate of 11.2% was 20 bps below its year ago rate. Half of the 62 markets tracked saw availability declines in Q4. Denver, Cleveland, San Francisco, Portland and Memphis were among the markets recording availability rate declines of at least 50 bps in the fourth quarter. Austin, Salt Lake City and Atlanta were among those recording the greatest declines compared to one year ago.

“With lower gas prices, easier access to credit and a rapidly improving labor market, consumer spending should continue to grow and the continuing decline in availability should translate into retail rent growth in the coming quarters,” said Mr. Havsy.

Apartment Market
Preliminary data for Q4 2015 shows that the nation’s apartment vacancy rate dropped 10 bps from a year earlier, to 4.6%. Compared to a year earlier vacancy rates declined in 36 of 62 markets while rising in 24 and staying the same in two. Cincinnati (-130 bps), Detroit (-100 bps) and Long Island and Providence (-90 bps each) had the greatest declines in vacancy. The tightest markets include those in the Greater New York area, Los Angeles, Fort Lauderdale, San Francisco, Salt Lake City and Nashville. The market is very tight and apartment demand remains strong as the vacancy rate pushes closer to its 20-year vacancy low of 4.0%.

“Over a longer time horizon, however, additional construction and renewed competition from the single-family housing market will temper rent growth,” noted Mr. Havsy.

* 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 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.

Media contact

Robert McGrath
Senior Director, Global Media Relations
email

SOURCE: CBRE

CBRE: U.S. commercial real estate market continued to exhibit strong momentum in the second quarter of 2015

  • Office Vacancy Rate at Lowest Point since Q3 2008
  • ​Industrial and Retail Sectors See Continued Improvement in Availability Rates

Los Angeles, 2015-7-15 — /EPR Retail News/ — The U.S. commercial real estate market continued to exhibit strong momentum across all property types in the second quarter of 2015 (Q2 2015), according to the latest analysis from CBRE Group, Inc.

During Q2 2015:

  • The office vacancy rate dropped 40 basis points (bps) to 13.5%, now at lowest point since Q3 2008 (13.2%).
  • In Q2 2015, the industrial availability* rate dropped 30 bps to 9.8%—matching the cyclical low achieved in Q4 2007.
  • The retail availability rate dropped 10 bps, ending the quarter at 11.4%.
  • Demand for the nation’s apartment buildings continued to grow with vacancy dropping to 4.3% in Q2 2015.

“The strong progress in the commercial market matched the continued steady improvement in the economy,” said Jeffrey Havsy, Americas Chief Economist for CBRE. “We remain bullish for the second half of 2015 as economic growth is expected to accelerate after a sluggish start to the year.”

Office Market
Q2 2015 was the 21st consecutive quarter without an increase in office vacancy rates since the end of the Great Recession. The office vacancy rate reached its lowest point since Q3 2008. Vacancy dropped to 13.5% with a decline of 40 bps and improvement remained broad-based across the U.S. office markets. The South and West regions saw the greatest improvement over the past four quarters, with notably strong performance in San Jose, Nashville, San Francisco, Richmond, Orange County and Austin. The nation’s lowest vacancy rates in Q2 2015 were in San Francisco (6.7%), Austin (8%), Nashville (8.4%), Pittsburgh (9%) and New York (9.1%).

“The U.S. office market was able to withstand economic headwinds during the first quarter and came back stronger than anticipated in the second quarter,” noted Mr. Havsy. “Economic fundamentals are pointing to a sustained U.S. office expansion in 2015, as companies are hiring workers at a robust pace, and investment in commercial real estate continues to show a positive trend.”

Industrial Market

The industrial availability rate dropped 30 bps from Q1, to 9.8%. The U.S. industrial real estate market has now seen flat or declining availability rates for 21 consecutive quarters, the longest stretch since CBRE began tracking the national market in 1989.

Lower industrial availability rates were widespread in Q2 2015. Markets of all sizes and in all regions posted lower availability rates during the quarter, paced by large markets, including Atlanta (-40 bps), Chicago (-40 bps), Los Angeles (-50 bps) and Riverside (-80 bps).

“The commercial real estate market showed broad based strength in the second quarter with significant declines in industrial vacancy rates,” said Mr. Havsy. “The need for new space is greater than it has been in nearly a decade. We expect the economy to continue to grow, aided by many tailwinds benefiting the industrial market including increased consumer spending and e-commerce and the continued resurgence of U.S. manufacturing aided by low energy costs.”

Retail Market
During Q2 2015, the retail availability rate dropped 10 bps from Q1 2015, and 40 bps from a year earlier, ending the quarter at 11.4%.  The rate is now 190 bps below its post-recession peak of 13.3%, representing a slow but ongoing decline. The greatest declines were posted by Louisville (-80 bps), Seattle (-40 bps), Salt Lake City (-120 bps) and Jacksonville (-40 bps). San Francisco recorded the lowest availability rate in Q2 2015 at 5.4%.

“The retail sector continued its slow and steady progress toward recovery with another 10 bps drop. A tightening labor market and continued low energy prices are expected to further support U.S. consumers, allowing for increased discretionary spending as the year continues,” said Mr. Havsy.

Apartment Market
Preliminary data shows that apartment demand continued to be strong in Q2 2015, with the multifamily housing vacancy rate declining to 4.3%, a 30 bps drop from a year earlier. This drop provides further evidence that the rental market continues to tighten along with the expanding U.S. economy. The market is very tight and apartment demand remains strong as the vacancy rate pushes closer to its 20-year vacancy low of 3.1% (Q3 2006).

Compared to a year earlier vacancy rates declined in 43 of the 62 markets, while rising in 15 and staying the same in four. The following markets experienced the greatest year-over-year declines (of 80 bps or more): Salt Lake City, Memphis, Richmond, Jacksonville, Las Vegas, Atlanta, Phoenix, Fort Worth, Orlando and Indianapolis.  Among those posting Q1 vacancy rates of 3.5% or lower were Providence, Newark, Hartford, Salt Lake City, Minneapolis, Miami, San Jose, New York and Sacramento.

With occupancy remaining high by historical standards, effective rent growth is expected to stay strong well into 2015. Although construction places downward pressure on rents, the market is tight enough to absorb this activity.

* 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 2014 revenue).  The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 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.

For Further Information:

Robert Mcgrath
Director, Sr
T +1 212 9848267
email

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