U.S. Commercial Real Estate Quarterly Review Q1 2018

Still Healthy, but Decelerating Growth

Barbara Byrne Denham, Senior Economist, Reis
Victor Calanog PhD, Chief Economist, Reis

Occupied Stock Rising for All Property Types

The broader U.S. commercial real estate market for 2018 improved steadily in the first quarter as occupied stock remain in the black – even in retail! The summary statistics, however, mostly show rising vacancies due to high levels of construction that exceeded net absorption. In most cases, it was a case of higher than average construction and lower than average absorption. Still, with so little change in vacancy rates in the quarter – as well as rents – it’s hard to see the forest through the trees. Let’s take a look.


“Many are expecting vacancy rates to soar as more store closures are expected this year.”

– Barbara Denham

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