Apartment markets led commercial real estate in the third quarter, with solid demand that outpaced an elevated level of construction. Vacancy rates declined to 5.8%, the lowest since 2014, and rent growth accelerated a bit.
Other sectors were mixed, however. There was little or no excess demand (net absorption minus completions, as a percent of existing stock) in the office and retail property sectors. Leasing and construction activity were slow and vacancy rates were flat, while rent growth decelerated.
Read more...Strong Demand for Apartments Leads Mixed CRE Markets in Q3 via Nareit