Commercial Investment Real Estate

MAR-APR 2015

Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.

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6 March | April | 2015 Commercial Investment Real Estate Ryan McVay/Getty Images U.S. Offi ce Sector: 4Q14 Absorption: 21.4 msf, ↑ 47% YOY Under construction: 105 msf, ↑ 76% YOY Vacancy: 14.5%, ↓ 30 bps from 3Q14 Average asking rents: $22.57, ↑ 2% YOY Source: DTZ TREND S MARK E T "By a wide margin, the U.S. was voted the most stable and secure country for investment, outstripping both second-place Germany by 55 percentage points, and third-place U.K. by 60 percentage points." —Association of Foreign Investors in Real Estate 23rd Annual Survey Industrial t Strength Year T e overall national industrial vacancy rate ended 2014 at 6.8 percent, the lowest level since 1Q 2001, according to Cushman & Wakef eld. T e vacancy rate was down 70 basis points YOY and 400 bps from its 10.8 percent peak in early 2010. T ere was 340.3 million sf of industrial leasing activity in 2014, a rise of 3.6 percent over 2013. Markets seeing huge leasing gains include Atlanta, up 51.5 percent YOY, and central New Jersey with a 21.7 percent increase. "In almost every market, industrial property demand continues to surpass supply," says John Morris, leader of C&W; industrial services. T e nation's 159.1 msf of occupancy gains in 2014 was up 35.7 percent YOY, which, with low supply, has resulted in healthy rent growth. At year-end, 105.1 msf of industrial inventory was under construction in the U.S. "T e industrial market is well positioned to gain further momentum in 2015," Morris adds. "T e battle between major retailers to make optional a 'last mile' experience that could be nearly instantaneous for customers will only accelerate in the coming year. Over- all, industrial square feet are replacing some retail space needs in the U.S. now, and for the foreseeable future."

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