Office and Retail Defy Negative Expectations
- Despite return-to-office uncertainty, 26M SQFT of Office space leased in 3Q 2021; vacancy down 10 bps QOQ
- In 3Q, Retail saw most quarterly space absorption since 2017 with 28M SQFT, dropping vacancies 20 bps YOY
- Both Office & Retail rents rose less than 1% in 3Q
Housing Demand Bolsters Apartment Performance
- Over 273K Apartment units were leased in 3Q; About 550K units have been filled YTD, beating any full year on record
- Vacancy rate fell 100 bps in 3Q to record low 2.8%
- Rents rose 6.5% QOQ, and are up 11.2% over last year
Long-Term Outlook Remains Favorable
- Companies boosting inventories and eCommerce drove 364M SQFT of Industrial space absorption YTD, 157M in 3Q
- Elevated demand pushed vacancy down 60 bps to 4.4%; Rents rose 3% in 3Q and 8% YOY, in line with forecasts
- Economic performance likely to sustain momentum
* As of 3Q 2021
Sources: Marcus & Millichap Research Services, RealPage, Inc., Costar Group, Inc.