The Eurozone, China, the Fiscal Cliff, Negative Election Rhetoric. All dominated the 3rd quarter headlines. And what was the U.S. property market’s response? Resilience. For all the talk of businesses being frozen, tenant demand remained steady. Office absorption hit 8 million square feet, maintaining the sector’s post-GFC pace. Net industrial demand was also solid at 20 million square feet. Since new deliveries were minimal, both sectors saw improving occupancies. Consumer-driven sectors faired even better. Apartments, the only sector that can be deemed “recovered,” saw 37,000 units absorbed, driving vacancy below the long-term average. Perhaps most importantly for the economy, the for-sale housing market continues improving. New and existing home sales and prices are on upward trend. This has a massive multiplier effect – positively impacting construction, furniture and appliance sales, consumer confidence and overall spending. If maintained, the residential recovery could keep the States from slipping over the cliff.
Source : CBRE Global Investors