6
March | April | 2015 Commercial Investment Real Estate
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McVay/Getty
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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."