Job Growth is the #1 Driver of Commercial Real EstateApril 6, 2013
In March we gave an update on the U.S. job market. We reported that February employment stats offered many promising signs, chief among them was 236,000 net new jobs for the month and unemployment down to 7.7%, the lowest point in four years. For commercial real estate, the most encouraging detail of the jobs report reveals that 100,000 office-using jobs were created in February, the largest monthly increase since September 2011.
In our March report, we noted that looking ahead, the tricky part involves predicting federal policy outcomes, the shaky euro-zone (yet again) and gas prices, all of which impact a lagging indicator such as employment. Assuming Congress finds a way to ease the impact of spending cuts to avoid the government shutdown at the end of March, the sequester will last only 3 to 4 weeks, and a reform favoring long-term budget reduction will be put in place, propelling economic expansion to 2.5% real GDP growth and 1.9 million net new jobs in 2013.
For the full Report, download here: 2013 Employment Tracker
For April, we just released our update on employment and how it is shaping up. It is a very telling info graph on where the jobs are being created. I hope you find the info graph interesting.
Let me know which market’s graph is in the wrong state!