Absorption in the top 8 cities declined 11% y-o-y YTD May 2016 and 14% y-o-y for May, while launches declined 47% y-o-y YTD and 68% y-o-y for May. Total inventory outstanding at 1,119msf is c34 months based on the past three months of the absorption rate. Most cities saw a decline in absorption m-o-m, and we believe any meaningful recovery would need positive incremental m-o-m numbers given the low base currently.
Residential sales and launches across top 8 cities continue to decline. Only commercial and retail are seeing a pick-up in demand
and interest from private equity investors.
