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Jobs report reflects need for additional office space

The Clinton and Trump campaign camps didn’t really focus on the unemployment rate or the jobs report in their respective conventions, but the latest jobs report supports what analysts have been saying about the commercial real estate market for months.

The national economy added 225,000 new jobs in July, and the unemployment rate remained unchanged at 4.9 percent. Overall, analysts determined that 1.3 million jobs have been added since the beginning of 2016. 

The professional and business sector added about 70,000 jobs. Additionally, the financial services sector added 18,000 jobs and hospitals added 17,000. The services industry also accounted for $19,000 jobs. Even the construction industry added jobs, which is not particularly common in summer months given how many projects are already underway.

The common denominator between these is that they all call for additional office space, which arguably accounts for the increase in commercial real estate projects across Southern California. We noted in our prior post the trends that could dictate the future of commercial real estate projects, and the increasing need for office space corresponds with these trends.

It remains to be seen whether the construction growth will continue in earnest. After all, the possibility of the Fed raising interest rates this fall is a viable possibility. In the meantime, investors and developers must make the best of existing opportunities, and an experienced real estate lawyer can help move potential to reality.

If you need assistance or have pressing finance questions, a real estate attorney can advise you. 

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