LOS ANGELES—According to CBRE's Q2 reports, allCRE sectors—industrial, retail, office andapartment—are experiencing increased leasingactivity and declining vacancy rates. The performance of thesesectors suggests that we are at or nearing full economicrecovery.

The office market is perhaps the most impressive performingsector, considering it was the last sector to recover afterthe economic downtown. In Q2 2014, vacancy ratesin suburban office markets fell 40 basis points, reaching 14.5%,while urban office vacancy rates fell by 30 basis points, reaching11.8% on average. More than 71% of the national markets, or 45 outof 63, experienced declining vacancy rates throughout the quarter.However, 15 markets did experience increasing vacancy rates. Notsurprisingly, it was those markets with high concentrations of techand media companies that performed the best. Overall, CBRE expectsoffice vacancy rates to hit 14.4% by the end of the year.

The retail sector was another slower to recovery, but is nowonly 150 basis points below its post-recession peak. In Q2 2014,retail vacancy fell 20 basis points to 11.7%, quarter-over-quarter.Tampa, Raleigh, Philadelphia and Charlotte were among the bestperforming markets, with vacancy rates that fell by 60 basispoints, while Cleveland, St. Louis and Salt Lake City sawincreasing vacancy rates by at least 40 basis points, compared toQ1 2014.