Jon Sockol: Commercial Real Estates Continued Recovery Jon Sockol, President of the Vivon Corporation, a real estate

firm located in Marlborough, Massachusetts, is optimistic about the commercial market, with good reason. Several indicators from the CBRE Group, Inc., show a slow but steady improvement. Despite natural disasters and fiscal cliff unknowns, the vacancy rate dropped to 15.4 percent for the fourth quarter of 2012. In particular, industrial vacancies nationwide dipped to 12.8 percent from a high of 14.6 percent. Minneapolis, Detroit, and Salt Lake City showed the greatest recovery in this category. Jon Southard, a manager for CBREs econometric advisers, said this represented shipments rising faster than employment, adding that returning to pre-recession levels required further growth. An important measure, office vacancies, fell steadily in 2012. In the fourth quarter, available space declined in 38 markets, increased in 19, and held steady in six, a pattern similar to industrial vacancies. Growth in suburbs outpaced that of urban areas. Retail executives were still skeptical about adding more space, but availability eased downward slowly in 2012. Markets in Denver, Cincinnati, Minneapolis, Ft. Worth, and Kansas City led this trend, while Tulsa, Long Island, and Bakersfield lagged. Jon Southard of CBRE emphasized that future growth in commercial sectors depended on the outcome of debt ceiling talks and possible spending cuts. Successful resolution of these controversies should fuel private sector confidence.