Steady demand meets limited supply
- Consumer sentiment hit a 17-year high in Q2 2017. Job growth exceeded expectations, while wage growth lagged. Overall, consumer spending is expected to increase amid rising confidence in the U.S. economy.
- Retail sales rose 4.2% year-over-year. Non-store retailers experienced double-digit sales growth.
- Overall net absorption totaled 13.9 million sq. ft. in Q2, with all major segments recording positive movement.
- Retail completions totaled 10.8 million sq. ft. in Q2. On average, the U.S. markets showed no signs of overbuilding.
- The overall availability rate has remained unchanged at 7% for the past three quarters and is 40 bps lower than a year ago.
- The average asking rent increased by 5.9% year-over-year to $17.18 in Q2—the highest since 2009—as absorption outpaced new supply