Los Angeles — The U.S. commercial real estate market continued a slow, but steady, recovery in the third quarter of 2013, according to the latest analysis from CBRE Group.
In the quarter, the retail availability rate declined 10 basis points to 12.2% and had fallen 70 basis points from one year ago.
Office vacancies dropped 10 basis points during the quarter to 15.1% and 50 basis points over the past year. Industrial availability decreased by 30 basis points from the second quarter to 11.7%. That rate is 130 basis points below last year. Apartment demand held steady with a vacancy rate for the quarter of 4.6%.
Retail sales have been volatile in recent months, continues the CBRE report. Growth still hovers slightly below its long-term trend and consumers seem more cautious as the holiday shopping season gets underway.
Analysts project the housing recovery will continue, a development that will benefit retailers selling housing-related goods. These retailers were the hardest hit during the downturn and have yet to return to pre-recession sales peaks. Other discretionary and necessity retailers have already reached and surpassed their pre-recession highs.