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Commercial and Residential Construction Starts Expected to Rise, Business and Industry Trends Analysis

The years 2011 through early 2015 saw commercial property markets that were very strong in a handful of markets, such as Houston, Texas and the Silicon Valley, while rent prices and construction has picked up globally from the depths of the recession.  For the fourth quarter of 2015, analysts at CBRE reported that commercial real estate across America had vacancy rates of 13.2%, compared to 13.9% for the same quarter in 2014 and down from 16.9% in the fourth quarter of 2013.  Average asking rents rose in the 2015 third quarter to $29.36 per square foot, up 4.8% from the same quarter in 2014.

Commercial markets continue to show signs of a good rebound.  CBRE reported that construction completions reached 35.7 million sq. ft. in 2015, the highest total since 2009 but still less than half of the previous 2008 peak of 75.9 million sq. ft.  Of the 57 markets tracked by CBRE Research, 11 had no construction underway at year-end, down from 16 markets one year earlier.

 


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