Second Quarter 2013 Market Overview

Following the trend over the past two years, the commercial real estate market continues to see a
gradual decrease in vacancy with a leveling off in certain sectors. New construction remains
constrained with the exception of Multi-Family.







OFFICE
Vacancy: Remained at 17.00% and is down from 17.3% on a YOY (year over year) basis.
Demand: Office mirrors job creation in the overall economy, the primary demand drivers have
been in the Medical, Education, Technology and Energy sectors.
INDUSTRIAL
Vacancy: The warehouse /distribution market continues to fall with vacancy at 11.8% down 10
points in Q1 and from 12.7% YOY.
Demand: According to REIS e-Commerce & Internet fulfillment have been driving demand
while import/export activity is tapering off due to economic activity outside the U.S.
RETAIL
Vacancy: Overall vacancy for retail is gradually declining and stands at 10.5% down 10 basis
points for Q1 and 30 basis points YOY. This is slightly lower then the all time high of 11.1% in
Q3 2011.
Demand: Grocery Anchored shopping centers are doing well with a trend toward specialty
anchors such as Whole Foods, Trader Joes and Sprouts. High end and low end (discounters) are
doing better, the middle is not the place to be, see Sears and JC Penny.
MULTI FAMILY
Vacancy: For Q2 the vancancy rate remained unchanged at 4.3% bringing a run of 13
consecutive declines to an end.
Supply: The level off of vacancy has been a function of increased supply growth. REIS has
indicated that new units coming on line are 85% pre-leased indicating that demand remains
strong.
By Fred Schmidt, President and COO, Coldwell Banker Commercial Affiliates

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