New York – Following a strong economic pick-up in fourth quarter 2013, values for both imports and exports fell during first quarter 2014, compared to the previous quarter. According to a new report from supply chain research firm Panjiva, imports dropped 5.42% and exports 3.84% from fourth quarter 2013, though activity in March fared better than in January and February.

Some of the report highlights include:

• Despite labor safety concerns, Panjiva’s data suggests Bangladesh is as an important source as ever; the value of U.S. imports is up 1%, compared to fourth quarter 2013 and the volume (number and weight) of shipments into the U.S. is also on the rise.

• Despite political tensions and economic sanctions imposed on Russia, imports from Russia actually increased 9% from fourth quarter 2013, while exports still dropped during the same time period by 5%; Vietnam also saw instability in the last few months due to tensions with China, but shipments remained slightly up in first quarter from the previous quarter at 3%.

• Saudi Arabia was a trading partner that stood out significantly in first quarter. While total trade actually declined this quarter, Saudi Arabia is actually the U.S.’s largest international buyer for dairy products and had a 142% increase in shipments since fourth quarter 2013.

Deal activity in Q1 2014 for office product picked up from previous quarters. Vacancy in Metro Tucson was 19.4% with net absorption of 45,274-square-feet for Q1 according to CBRE. Vacancy is down from 20% and absorption is down from 63,031-square feet at the end of 2013.

Despite the decrease, this is the second consecutive quarter of positive absorption for the office product. Vacancy decreasing is a positive sign for the Tucson market. The submarkets gaining the most traction were midtown locations and throughout the Catalina Foothills in the Northeast submarket.

Activity is coming predominantly from local tenants who are looking for creative space and locations that offer collaborative environments.

Average asking lease rates on a full service basis for tracked office product in Tucson was $19.745 per square-foot per year in Q1 2014. Historically, office lease rates have remained relatively steady since the recession, maintaining an average rate between $19 per square-foot and $20 per square-foot. Tucson is expected to retain this holding pattern until vacancy rates decrease significantly.

There were no completions of office product during Q1 2014 but there was an increase in construction activity, which now amounts to a total of 186,497 square-feet. The longest number of office building being constructed resides in the North Central region: 20,000-square-feet in Villa Fatima at 1119 E Rancho Vistoso Blvd; 18,092 square-feet at 3808 N 1st Ave; 6,313 square-feet in Puento Nuevo Plaza at 3935 E Ft Lowell Rd; and 35,881 square-feet at the corner of Swan and Skyline.

In the Northwest side of Tucson, Magee Corporate Center continues to add space a little at a time, with 6,211-square-feet under construction, to be delivered sometime in Q2 2014.

In the East Central corridor, a 100,000 square-foot build-to-suit will soon exist for the Department of Economic Security, developed by Harrison Properties, LLC. This is significant as office construction has been nonexistent in greater Tucson since 2009. This type of construction activity will continue to strengthen Tucson’ economy and create a business-ready environment.

For complete report click here: CBRE1Q2014 Tucson Marketview Office

Los Angeles –  Based on preliminary data from CBRE Group, Inc. office and industrial vacancy rates declined in most major U.S. markets during Q1 2014. Eight out of 13 major metro markets saw vacancy fall and average asking rents increase as companies’ appetite for more space grows.

“The U.S. economic recovery is continuing to fuel demand for office space nationally; with relatively little new space coming on the market, landlords are seeing the pendulum of pricing power shift in their direction and are able to raise rents modestly in most major markets,” said Art Jones, CBRE Senior Managing Economist.

In addition to the 1.3 million square feet of build-to-suits under construction across the Valley, there is 405,622 square feet of speculative space currently under construction. Many of these buildings are slated for completion this year and given the high demand for high quality office space, construction will begin on additional projects over the next several quarters.

The U.S. industrial market also had healthy activity in Q1 2014, according to CBRE, with demand for space notably strong in Class A big-box space, driven by e-commerce, logistics and food facility users.

“Industrial fundamentals continue to strengthen on the back of strong economic drivers. With trade, industrial production and private inventories all expanding, early numbers suggest the industrial sector is continuing to recover strongly in Q1 2014,” said Jared Sullivan, CBRE Senior Economist.

U.S. Office Market Highlights:

• Atlanta and Seattle led the way in vacancy declines, each with a vacancy rate drop of 60 basis points (bps) during Q1 2014.  Technology firms once again led demand improvements in Seattle as the local economy continued to fire on all cylinders. In Atlanta the story was more broad-based with tech, health care and service firms leading demand.
• Miami also posted a 50 bps fall in its office vacancy rate as scientific; in addition, scientific, research and engineering firms accounted for some of the market’s largest leases signed this quarter.
• Though the Washington, D.C. office market saw vacancy fall by 10 bps, overall demand remained weak as a result of government consolidations and with new deliveries in the offing, landlords will continue to face pressure heading forward.
• Both Boston and Houston saw vacancy increase in Q1 2014, but strong underlying economic growth suggests that this is not representative of trend.  Average asking rents increased across eight of 13 markets and concessions held steady.
• Phoenix led the nation with a 3.9% increase in average asking rents, followed by San Francisco at 3.3% as large blocks of space in both markets are in short supply.
• Though office development nationally remains constrained, increased development activity was evident in markets like Houston and San Francisco, which each reported deliveries of approximately 1.2 million sq. ft.