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Slowing Employment Gains May Keep CRE Growth in Check

U.S. economic growth appears to have plenty of runway left, which may not be true of employment growth. In a new report, Transwestern CIO Tom McNearney explains that to date, office and industrial have performed well across most metros with construction balanced by absorption, but low unemployment will likely keep future performance in check.

The report notes that job openings in July outnumbered job seekers by 650,000. With workforce growth projected at only 0.6% annually through 2026, many economists deem labor the top concern in sustaining economic growth.

“Continued strong job growth, coupled with increasing wages, has fueled office and industrial real estate absorption across the country in 2018, and there remain billions in dry powder in the capital markets,” said McNearney. “Americans are benefitting from higher disposable income—particularly after tax—that has resulted in rising retail sales. This, in turn, has continued to drive the industrial sector.”

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Inside The Story

Read more at TranswesternConnect With Transwestern's McNearney

About Paul Bubny

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 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).

  • ◦Economy
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