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Q3 2016 Apartment Trends
- The national vacancy rate for multifamily properties across Reis’s largest metro markets did not budge from it 4.4% in Q3 2016.
- Close to 40,000 new units came online in Q3 2016.
- Demand remained robust enough to absorb the amount of units that are coming online.
- Asking and effective rents grew by 1%.
- Year-over-year asking rents grew by 3.9% and effective rents grew by 3.8%.
- Most expensive coastal markets’ highest priced properties are showing weakness.
Q3 2016 Office Trends
- The national office vacancies remained moored flat at 16% in Q2.
- Year-over-year office vacancies have declined 40 basis points.
- Rents began to accelerate but fell back to its average quarterly level at .4% respectively for both asking and effective rents.
- Year-over-year rents are seem to be healthy, pulling at 2.7% and 2.8%.
- U.S. economy creating fewer jobs than in 2015 and 2014.
- Upcoming November elections a determining factor for firms holding off long-term commitments.
Q3 2016 Retail Trends
- Regional malls showed some improvement with vacancies declining 10 basis points to 7.8%.
- Relatively strong asking rent growth at 0.5%; between 0.3% and 0.5% on a quarterly average asking rent growth.
- Neighborhood and community shopping centers vacancies rising by 10 basis points ending Q3 at 10%.
- Asking and effective rents both grew by 0.4%
- Businesses are pulling back on capital spending and long-term investments, waiting on results of upcoming elections.
Q3 2016 Industrial Trends
- Warehouse and industrial subsector vacancies remained stuck at 10.5% in Q3.
- Year-over-year vacancies for warehouse and distribution declined by 20 basis points.
- Asking and effective rents grew by 0.4% and 0.5% respectively, growing 2.1%-2.3% on a year over year basis.
- Flex/RD showed more activity in Q3, falling 20 basis points to 11.4%.
- Year-over-year Flex/RD has declined by 70 basis points.
- Asking and effective rents grew by 0.4%, year-over-year growth in the low 2% range.
- 75,000,000 SF of new construction for warehouse and distribution for all of 2016.
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Source: Reis Nov 3, 2016
