REIS Q2 2015 First Glance Commercial Real Estate Industry

REIS 3rd Quarter 2015 Commercial Real Estate Sectors Overview

Apartment Trends

green-bulletMultifamily vacancies inched upward by 10 basis points in Q3 to 4.3%.
green-bulletDespite a pullback in new construction in Q3, vacancies still rose.
green-bullet100,000 new units are expected to come online over the next 6 months.
green-bulletAsking and effective rents increased by 1.4% and 1.5%, respectively.

Office Trends

green-bulletOffice vacancies hit 16.5% in Q3, down 10 basis points.
green-bulletAsking and effective rents increased by 0.6% and 0.7%, respectively.
green-bulletMuted supply growth should produce slow and steady declines in vacancy and increases in rents over the next year or two.

Retail Trends

green-bulletNeighborhood and community center vacancies remainder unchanged at 10.1%.
green-bulletAsking and effective rents increased by 0.5% for neighborhood and community centers.
green-bulletClass A malls also stalled; vacancies didn’t move from 7.9%.
green-bulletMuted new supply coming online has balanced tepid demand for this property type.

Industrial Trends

green-bulletIndustrial properties outperformed most other property types.
green-bulletWarehouse/distribution vacancies fell 10 basis point to 10.7% in Q3.
green-bulletAsking and effective rents rose by 0.4%.
green-bulletFlex/R&D vacancies fell by 20 bps to 12.1%.
green-bulletAsking and effective rents grew by 0.3% and 0.4%, respectively.

New Construction Trends

green-bulletNew completions for each of the major property types changed relatively little versus last quarter, a sign that construction is firming.
green-bulletSurprisingly, Retail was the only sector that experienced an increase versus last quarter.
green-bulletThe Apartment and Office sectors registered declines.
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