Business Trends

Job Growth Is the #1 Driver of Commercial Real Estate, by Cassidy Turley

File Type: Free Content, Article
Release Date: April 2013
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The latest employment trends and their impact on the property markets suggest that demand levels in 2013 should be consistent with the improvement observed in 2012 or better, according to a new Cassidy Turley report How Is U.S. Employment Shaping Up? The report stressed that for every 100,000 net new office-using jobs created, vacancy typically falls by 60 basis points six months later.

For the 12-month period from February 2012 to February 2013, the top 10 nonfarm job growth markets were:

Houston, Texas: 4.4%
Salt Lake City, Utah:4.1%
Fort Worth, Texas: 3.9%
Austin, Texas: 3.8%
San Francisco, California: 3.5%
Dallas, Texas: 3.4%
Louisville, Kentucky: 3.3%
Nashville, Tennessee: 3.3%
San Jose, California: 3.1%
Denver, Colorado: 3%

The report also looked at employment by sector for the same period and found that:

Office-using increased by 639,000
Retail trade increased by 217,900
Financial activities posted a gain of 81,000
Manufacturing increased by 71,000
Government decreased by 76,000