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Commercial Real Estate Markets Show Steady, Moderate Growth

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By Walter Molony

Annual industrial rents are expected to rise 2.4 percent this year and 2.6 percent in 2014. Net absorption of industrial space nationally is anticipated at 102.0 million square feet in 2013 and 105.8 million next year.

Retail Markets
Retail vacancy rates are forecast to decline from 10.6 percent in the third quarter of this year to 10.0 percent in the third quarter of 2014.

Presently, markets with the lowest retail vacancy rates include San Francisco, 3.9 percent; Fairfield County, Conn., at 4.1 percent; Long Island, N.Y., 5.0 percent; and Orange County, Calif., at 5.5 percent.

Average retail rents should increase 1.5 percent in 2013 and 2.3 percent next year. Net absorption of retail space is projected at 11.8 million square feet in 2013 and 18.2 million next year.

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