Hot on the heels of the US Bureau of Labor Statistics’ monthly, lackluster unemployment report, Cornell University and New York City-based SelectLeaders have given the commercial real estate industry reason for serious hope. The two organizations have teamed for their quarterly Job Barometer and the results are nothing less than spectacular, with postings returning to pre-2008 levels.
The industry is on the hunt to fill positions. In fact, job postings for the first quarter of this year are up 25% over the same period a year ago. First-quarter performance wasn’t a flash in the pan, either. The gains posted for Q1 2012 represented a 27% hike over 2011.
“The positive momentum in commercial real estate job postings is a strong signal that the sector has a renewed sense of confidence” says David Funk, director of the Baker Program in Real Estate at Cornell University, “while nonfarm employment is still 2.5 million jobs below the pre-recession peak and the economy still has some way to recover, the outlook for commercial real estate employment looks positive.”
Of particular note are the gains made in development. The Barometer reports that postings is this area represented 17% of the total for the first two quarters of the year—up from only 7% for the first half of 2012.
“May broke all recent records, thanks in part to full-service development firms again posting,” says SelectLeaders CEO Susan Phillips. “We had more jobs posted on the site this May than we had on average in 2007, the benchmark year for job creation in our industry.”
But investments and asset management firms were the most active hiring, with 25% of postings, even though this is down from a peak of 32% in Q4 2011. Consulting and advisory services were down from 17% to 10%.
But investments and asset management firms were the most active hiring, with 25% of postings, even though this is down from a peak of 32% in Q4 2011. Consulting and advisory services were down from 17% to 10%.
Looking by market sector, the Job Barometer reveals some encouraging news for the office market. “Q1 2013 has seen the trend toward increased job postings in the office sector continue with postings up 3% on the previous quarter,” says Funk.
Multi-sector, retail and multifamily areas dominate job openings in 2013, making up almost 60% of postings. However, the Job Barometer has seen a trend downward in multi-sector postings, which are down 15% on an annualized basis. The retail and multifamily sectors were stable at 20.5% and 17% respectfully.
The banking sector has continued its fall in Q1 2013 with postings down to 7.5%. This is a significant movement for that concentration, which made up 24% of postings in 2010.
John Salustri, GlobeSt.com.
