-70
construction recorded noticeable growth. The unemployment rate declined from 7. 6 percent to 7. 5 percent in March.
Businesses have also increased investments in
equipment and jobs. Business spending gained 2. 1
percent in the first quarter of the year, focused on
capital, equipment and software. With international
trade remaining favorable, and adding the increased
domestic oil production, which led to diminishing
need to import it, the balance of trade narrowed in
the first quarter from $43.6 billion to $38.8 billion.
Government spending continued its decline,
shrinking 5.0 percent in the first quarter, driven
by budget cuts at federal, state and local levels. At
the federal level, both defense and nondefense cuts
added to a 8. 7 percent decrease in spending. State
and local governments slashed spending by 2. 4 percent. Though negative to the economy over the short
term, lowering the federal budget deficit will likely
help long-term economic prospects.
The outlook for the remainder of 2013 is for GDP
to grow at a 2.0 percent annual rate. Payroll employment is expected to rise 1. 5 percent, as the unemployment rate remains around 7. 5 percent.
- 40 - 30 - 20 - 10 0
Cars
Midsize
Small
Luxury
Large
Light-duty trucks
Pickup
Cross-over
Minivan
Midsize SUV
Large SUV
Small SUV
Luxury SUV
Vehicle Sales April 2013 (% Chg Yo Y)
- 60
- 50
10
20
30
Source: www.motorintelligence.com
SIOR Index
Northeast
Midwest
South
West
SIOR Index Results
Office and industrial properties notched a slight rise
in market conditions during the first quarter of the
year. The Commercial Real Estate Index, representing first quarter 2013 data, rose 0.6 points. The
national index, based on 10 variables pertinent to the
performance of U.S. industrial and office markets,
closed at 81.7. The office sector gained 1.0 point to
an index value of 76.1, in the wake of employment
gains in business and professional services. The
industrial sector rose 0.3 points to a value of 85.9,
as demand for warehouses continues to grow. Both
sectors continue their march towards normalization,
with index values at the highest since the fourth
quarter of 2007.
With steady macroeconomic conditions, commercial markets across the country notched noticeable growth. However, during the quarter, growth
was spread unevenly. The South retained its top
spot in absolute index values, and also in quarterly
growth, advancing 4. 4 points. The Northeast was
second in terms of growth—rising 0.4 points—
and ranking. Markets in the Midwest and West lost
ground during the period, decreasing by 7. 3 points
and 4. 6 points, respectively.
Market trends were positive across most indicators. Leasing activity improved in the first quarter— 46 percent of respondents found activity in
line with or higher than historic levels. Vacancy
rates continued declining, with 89 percent of SIORs
pointing to vacancies which are the same or lower
than a year ago. Concessions remained the norm
Continued
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Source: SIOR, NAR
GDP
SIOR Index
150
6.0
100
4.0
2.0
0.0
50
Index Value
0
- 2.0
Percentage, Annual Rate
- 4.0
- 6.0
- 50
- 8.0
-100