LOS ANGELES--(BUSINESS WIRE)--Lee & Associates, the largest broker-owned commercial real estate firm in the nation, has released its 2Q National Industrial, Office and Retail Market reports for second quarter 2015.
The three reports, compiled by Lee & Associates’ Research Department, and the data provided by the firm’s office locations in the West, Southwest, Midwest, East and South and Southeast regions, all have an underlying theme, which is vacancy is down, rents are up, and absorption is significantly in positive territory for all product types.
“Across the board it seems industrial users will attach a higher value for new distribution buildings that are more efficient,” said Lee & Associates CEO Jeff Rinkov. “Retailers will see greater value for prime locations near urban core areas and office users will pay more to locate in amenity-rich environments that attract a workforce getting younger every day.”
At the mid-year mark, the US industrial property market continues to enjoy improving market metrics. Net absorption, vacancy, average asking rental rates and construction activity all point to further business expansion and strong demand, especially for bulk distribution space, which is dominating market activity.
In the US office market, the report shows there was another vacancy decline of 10 basis points to 10.8%. However, most of the activity is concentrated in a handful of major markets; secondary markets make more modest gains. In the past four quarters, the overall vacancy rate has moved down by 30 basis points, and with so much of the activity concentrated in larger spaces, larger blocks of space are becoming harder to find in hot markets like San Francisco and New York and where growth in the TAMI sector has boosted job creation and sent rents to record highs.
The US retail property sector continued its moderate but steady improvement in the second quarter. The vacancy rate fell another 10 basis points for the period, settling at 5.9%. Since the third quarter of 2014, vacancy has declined by 30 basis points despite growth in consumer spending in general. Retail sales in particular, have been spotty over the past year. Retail sales fell .3% in June after moving up 1% in May.
The three complete reports can be found below:
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Lee & Associates is the largest broker-owned firm in the country with locations across the nation including California, Colorado, Arizona, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Texas and Wisconsin. Lee & Associates provides a wide range of specialized commercial real estate services on a local, regional and national level. For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn and Twitter.