Office vacancy rates declined in most major U.S. markets during Q1 2014, based on preliminary data from CBRE Group, Inc. Eight out of 13 major metro markets saw vacancy fall and average asking rents increase as companies’ appetite for more space grows.
“The U.S. economic recovery is continuing to fuel demand for office space nationally; with relatively little new space coming on the market, landlords are seeing the pendulum of pricing power shift in their direction and are able to raise rents modestly in most major markets,” said Art Jones, CBRE Senior Managing Economist.
The U.S. industrial market also had healthy activity in Q1 2014, according to CBRE, with demand for space notably strong in Class A big-box space, driven by e-commerce, logistics and food facility users.
“Industrial fundamentals continue to strengthen on the back of strong economic drivers. With trade, industrial production and private inventories all expanding, early numbers suggest the industrial sector is continuing to recover strongly in Q1 2014,” said Jared Sullivan, CBRE Senior Economist.