Stagnation Not Collapse For Commercial Real Estate

 

Philadelphia Real Estate Blog – Commercial Real EstateJust got done reading an interesting article on Globe Street.com by Hessam Nadji.   The article looked at September’s jobs report with respect to the commercial real estate industry and concluded that the economy, while not robust, is nowhere as bad as the talking heads and pundits would have you believe.  Rather, the actual data shows positive trends for commercial real estate owners and investors, preliminary third-quarter readings indicate relatively stable occupancies across major property sectors with apartments and office showing slight improvement and retail weakening a bit. 

Just got done reading an interesting article on Globe Street.com by Hessam Nadji.   The article looked at September’s jobs report with respect to the commercial real estate industry and concluded that the economy, while not robust, is nowhere as bad as the talking heads and pundits would have you believe.  Rather, the actual data shows positive trends for commercial real estate owners and investors, preliminary third-quarter readings indicate relatively stable occupancies across major property sectors with apartments and office showing slight improvement and retail weakening a bit.

Here is some of the positive data from the jobs report:

• Private sector job gains totaled 137,000.
• July and August revisions accounted for net gain of 184,000 jobs, more than twice the number originally reported.
• Even in the midst of August’s political and financial markets turmoil, employers added more jobs than initially expected.
• Private sector jobs over the past year have been broad-based with professional and business services adding 561,000 jobs, followed by healthcare and education at 450,000, trade/transportation adding 325,000 positions and even manufacturing adding nearly 200,000 jobs.

Finally, the author concluded, ‘the September’s jobs report reinforced our view that the economy entered a period of stagnation a few months ago. It is also further evidence that the cumulative effect of Europe’s lingering debt issues and the political stalemate in the United States have not resulted in corporate panic and large volume layoffs. As I have stated in several past blogs, the economy is on much firmer ground as measured by retail sales, corporate profits, corporate balance sheets, exports and manufacturing readings, all of which are at or above pre-recession peaks. The anchor holding back the natural, if less than stellar, pace of expansion that should be occurring by now is uncertainty.”

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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog

Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
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