CBRE Econometric Advisors (CBRE-EA) released their latest analysis of the real estate sectors in America for Q1 2012, showing that the office vacancy rate remained at 16% after Q4 2011 and industrial availability dropped to 13.4%. "The most important economic news in Q1 2012 was the pick-up in hiring, but so far we have only seen strong improvement in the multi-family sector," said Jon Southard, Managing Director, CBRE-EA. "For property types with longer leases, the employment gains served mostly to fill in "shadow vacancy" -- space that was previously leased but not used. The delay between stronger employment and a pick-up in leasing demand is typical for the early stages of recovery in the office, industrial, and retail sectors."
"The job market will need to approach its pre-recession form before more rapid improvement in the office market can take hold," Mr. Southard said. "We continue to anticipate more robust hiring during the second half of 2012, which will move us closer to that goal."
This past week CBRE Group Inc. also held its quarterly press event in Houston, noting that there may not enough available office space in the city to go around according to a Houston Business Journal article. Jon Lee, a first vice president with brokerage services at CBRE, noted that, in the Houston-specific submarket, the climate has shifted in such a way that where he previously had several options to choose from, he's now finding it difficult to find space at all.
"There are bidding wars that are occurring," said Lee, referring to west Houston. "We're seeing bidding wars on Class B space. It doesn't take a rocket scientist to see that in a couple of years, we're going to have a problem."
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