Q4 Summary & Conclusions: Apartment, Office and Retail Trends

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Q4 Apartment Trends

Q4 Summary & Conclusions: Apartment, Office and Retail Trends

by on February 16, 2012

 

2011 was another great year for the apartment sector. Office properties continued to recover, and the retail market showed its first signs of improvement. Read on to learn how the different sectors performed during the fourth quarter, and visit your metro page of interest for more detailed information by navigating through the Metro/SubmarketReports tab in the navigation bar above.

The Apartment Market Stays Strong
  • Vacancies were down to 5.2% by the end of 2011, a level last observed in 2001.
  • Rent growth has been consistently positive for eight straight quarters, and may accelerate even more.
  • Tight supply has helped fundamentals, and expect 2012 to be similarly good. Large completion figures in 2013 may complicate matters.
 

  • Slow but steady decline in vacancies (30bps over the course of 2011) mirrors the slow but steady pace of job creation in the overall economy.
  • Absorption has been positive for five quarters, implying favorable churn in leasing.
  • Effective rent growth was also positive for five consecutive quarters ending at $22.53.  

Office Properties Continue to Improve

 

Retail Sector Seeking Stabilization
  • Vacancies remain at 11.0%, unchanged for three quarters at a level last seen in 1991.
  • Asking and effective rent increased by 0.1% in the fourth quarter; the first recorded increase since 2008.
  • Occupied stock increased by 3.18 million SF in Q4. This is the largest positive value for net absorption since the first loss of occupied space in early 2008.