In a report issued today by Cushman & Wakefield the Firm suggest that improvement is continuing to occur in US employment trends. Of significance: “Employment in the key office-using industries (Financial, Professional Business Services and Information) increased for the third time in the past four months, adding 23,000 jobs. Since October, the national economy has added 131,000 office using jobs.”
Given that office using employment is by far the most important driver of recovery in the commercial real estate markets, these stats are indeed a positive sign. We at The Commercial Tenant Resource believe that that we are solidly on the bottom of the employment curve looking up. Once recovery begins in earnest, then activity will pick up as well. Landlords will be quick to interpret increased activity and larger leases getting done as a sign that they can ease off concessions.
While different markets in the United States will turn around at varying speeds, it seems clear now that consumers are spending, manufacturers are manufacturing and corporate America is in the beginning stages of inviting more back into the workforce. As the report states: “The stabilization of the national labor market is the most positive economic development in two years….It means we are in the process of turning the corner.”
This is good news for the economy as a whole but it would appear that we are approaching the time of maximum opportunity for tenants in the real estate marketplace.