"Over The Hump"
The leasing markets for office, industrial, retail and apartment properties all began to recover last year. Office vacancy peaked in the second quarter while vacancy rates for the other property types peaked in the first quarter. The apartment market is recovering at a vigorous pace with asking rental rates, which typically lag vacancy rates, rising 1.7 percent in 2010. Office and industrial rents stabilized by year-end while retail rents are expected to bottom out in 2011. Look for selective rental rate increases among all property types this year. The factors driving the improvement in leasing market conditions vary by property type. These include a modest return of job growth, surging corporate profits and cash reserves, solid business spending, gradually improving consumer spending, growing international trade, and the release of pent-up demand that built up during the 2007-2009 recession.