The South and West lead job growth
  • Growth continued to be industry-focused; however, the number and types of industries witnessing expansionary activity has grown.
  • Office-using jobs represented 31.8% of year-on-year employment growth
  • Growth has broadened from being concentrated in tech- and energy-heavy geographies 12 months ago to a wider spectrum of markets today. In particular, secondary and tertiary metro areas such as Atlant a, Charlotte, Florida, Phoenix and parts of the Midwest have seen pricing momentum of late in addition to continued strong growth in those tech and energy markets of Northern CA, the Upper Northwest, Texas and Colorado.
  • Growth is led by Creative, technical and skilled professional subsectors.
  • Outside of the office-using sectors, educational, health services and hospitality have continued to see sustained improvement.
  • Geographically, job growth is spreading. While energy and tech hubs still lead, the Sunbelt is picking up slack.
  • Sources:Moody's Analytics, PPR

Demand and Supply Change Q/Q
  • Consumer confidence is on the rise even though unemployment has not declined noticeably in months.
  • Despite climate vagaries, the U.S. economy remains on solid footing. Both consumer and business balance sheets are at near-record health.
  • The household debt-to-service ratio (includes consumer debt and mortgage loans) is at its lowest level in nearly 35 years. The amount of debt that was suppressing consumer spending in the first three years of the economic recovery has been mostly refinanced or paid down.
  • Real GDP grew by 3.7% in the last six months of last year, the strongest rate of growth in almost two years
  • Source:Costar Portfolio Strategy

YY Change In Demand For Major Markets
  • The growth in suburban office demand has been broadly based and shows how growth industries like technology can drive suburban demand over the slower growth industries of finance and government that dominate most CBD’s.
  • Source:Costar Portfolio Strategy