National Vacancies

Forecasts show that net absorptions are expected to rise in the fourth quarter of 2017 in the West region and to decrease by approximately 20 percent in the South. Vacancy rates are expected to remain almost the same in the fourth quarter of this year.

U.S. retail market conditions

Source: CoStar Group Inc.
*Monthly chart cycles among office, industrial and retail. Source: CoStar Group Inc.

During the fourth quarter of 2016, net absorptions increased compared to the same quarter of 2015 in all the regions, with the largest gain (12.5 percent) in the West. In the Northeast, the net absorption had the smallest increase: 4.8 percent. Vacancy rates decreased year-over-year in all the regions, with the largest change coming in the South, which dropped from 5.7 percent in the fourth quarter of 2015 to 5.1 percent in the fourth quarter of 2016. Forecasts show that net absorptions are expected to rise in the fourth quarter of 2017 in the West region and to decrease by approximately 20 percent in the South. Vacancy rates are expected to remain almost the same in the fourth quarter of this year. Decreases of 0.1 are expected only in the West and Midwest.