New job creation and recruitment in the US, caused by the wider economic recovery, is causing a surge in business for the commercial property market.
Real estate developers and agents have reported an upswing in business from companies looking to expand their office space to accommodate increasing headcounts. It reflects the strong job creation figures for this year, which have seen the national economy add more than 200,000 jobs in April, for the third month in a row.
Figures for May are expected to be on the same level, with a pace of job creation that is fast enough to keep up with the growth in population and to reduce unemployment.
Lawrence Yun, the chief economist at the National Association of Realtors, said, "Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and two million jobs annually both this year and in 2012, with the unemployment rate falling to eight per cent by the end of next year. Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down."
It is predicted that the greatest surges in job creation will be in cities known as tech hubs, such as San Francisco, Seattle and San José, and those with reputations as energy hubs, such as Dallas, Houston and Denver.