Commercial fundamentals in REALTORS® markets continued gaining strength during the second quarter of 2015. Based on NAR’s Commercial Real Estate Market Trends report vacancy rates mirrored regional and product variations, as most properties posted availability declines. With rising new supply, apartments experienced availability increases, as the national average rose from 6.0 percent in the second quarter of 2014 to 6.6 percent in the second quarter of this year.
Office vacancies declined 65 basis points to 15.9 percent compared with a year ago. Industrial availability posted the largest year-over-year decline—246 basis points—to 10.8 percent. Retail vacancies declined 137 basis points on a yearly basis, to 13.2 percent.
Lease concessions declined 8.1 percent. Tenant improvement (TI) allowances averaged $10 per square foot per year nationally. In keeping with higher vacancies, office properties recorded the highest TI rates at $17 per square foot per year. Apartments posted the lowest TI rates—$3 per square foot per year.
To access the latest Commercial Real Estate Market Trends report, visit: http://www.realtor.org/research-and-statistics/commercial-real-estate-market-survey.