Retail property market performing well in the US | 8 July 2014
The availability of retail space in the US declined during the second quarter of 2014, signalling significant growth in the national property market.
CBRE’s latest industry report shows that availability dropped by 20 basis points (bps) from the previous quarter to reach 11.7 per cent – just 150 bps short of the post-recession peak of 13.2 per cent.
Confidence in the market’s future should also be high if the property firm’s researchers are to be believed. They expect the availability of community and neighbourhood shopping venues to drop to just 11 per cent before the end of the year, worldpropertychannel.com reports.
The office market performed well between April and June too, with vacancy rates in downtown areas dropping to 11.8 per cent for the quarter. In suburban zones, the figure declined to 15.9 per cent.
Jon Southard, the head of CBRE’s Econometric Advisors group, was quoted by globest.com as saying: “The office recovery continues to advance with the lack of development in most markets as well as strength in private-sector payrolls continuing t o support occupancy growth.
“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.”
Office-market optimism is generally high across most areas but those with high concentrations of energy and tech firms, such as St. Louis, Raleigh and Oklahoma City, performed particularly well in the report.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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