Rise in Office-Using Employment Signals Positive Momentum for Demand
An uptick in office-using employment suggests positive momentum for office space demand, says Transwestern. That’s the case even as first-quarter occupancy gains reversed course and turned negative after Q4 2021’s positive absorption.
“Though absorption treaded into negative territory after a favorable end to the year, significant gains in office-using employment – more than double the 0.4% per quarter average pre-pandemic – offer a promising outlook for the office sector,” said Elizabeth Norton, senior managing director of research services at Transwestern.
Of the 1.7 million jobs added nationally during the year’s first quarter, 27% were office-using, with employment placement agencies, consulting firms and tech companies leading the pack. The uptick in office-using employment was up one percentage point to 47.6 million during Q1, according to Transwestern.
The rise in office vacancies stemmed partly from Q1’s delivery of 15.5 million square feet nationwide, 57% of which was not pre-leased.
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).