The worst is behind us, says CBRE as US vacancy slows.

Vacancy rates in the U.S. office, industrial and retail markets continued to climb but at a slower pace in 3Q 2009, while the rate for multi-family properties remained steady, according to the latest analysis from CBRE Econometric Advisors (formerly CBRE Torto Wheaton Research). "Like with job losses, the worst period of vacancy increases is behind us. Still, this is of little comfort when 'less bad' only adds to record high vacancy rates in many markets and property types," said Jon Southard, director of forecasting, CBRE Econometric Advisors.

The office vacancy rate increased, by 60 basis points (bps), to 16.1%, at the end of the third quarter. Although this was the eighth consecutive quarter of rising vacancy rates, it was lower than the 80-bps increase in 2Q 2009 and was the slowest pace of increase since 4Q 2008.

The suburban vacancy increase (60bps) was slightly higher, than the increase for downtown areas (50bps). Downtown areas' relative outperformance in this recession continued, with a cumulative increase of 260 bps through the third quarter. By contrast, suburban vacancy rates have risen by a total of 430 bps, thanks largely to the subprime crisis hitting some suburban markets as early as mid 2007.

Vacancy increases were broad-based once again during 3Q 2009, with 46 out of the 57 markets recording rising rates and 11 recording unchanged or lower rates. Of those 11, the Texas markets of Fort Worth, Austin and Houston stood out as relatively good performers.

The state's natural resources, high-tech firms, and banks' conservative lending practices have helped that local economy to outperform the rest of the country so far in this recession.