Commercial Real Estate & Business News – January 13, 2015

In the Bureau of Labor Statistics monthly jobs reports, the devil’s always in the details. Overall, December turned in a strong report, with an addition of a net of 252,000 jobs nationwide, but it’s also a good report for various commercial real estate sectors. For instance, employment in the professional and business services sector rose by 52,000 in December, potentially meaning that an increase in demand for office space is brewing (though the relationship between adding jobs and adding space isn’t as automatic as it used to be). In any case, employment increased in administrative and waste services (up 35,000), computer systems design and related services (up 9,000), and architectural and engineering services (up 5,000). Not every subsector did well, however: employment in accounting and bookkeeping services was down 14,000, offsetting an increase of the same amount in November… Read more »
Global investors continue to view the United States as the most stable and secure destination for real estate investment. More than 90 percent of global investors said they plan to maintain or increase the size of their U.S. real estate portfolio in 2015, according to the survey. A year ago, the survey showed 48 percent of respondents anticipating a modest increase in their U.S. holdings… Read more »
“At the top of the list [of priorities] is the Marketplace Fairness Act. The MFA will level the playing field between brick-and-mortar and online retailers when it comes to collecting state sales taxes. The world of commerce has changed, and so should this law,” Shay said. “Last year we reshaped the debate on patent litigation reform. Now we want to move patent litigation reform through Congress, and to the president’s desk for signature. And on cyber security, we expect Congress to take a Common-sense approach to national standards for breach notification and information sharing. With a little help from Washington, we might – finally – unlock the potential in this economy and start growing again”… Read more »
For the workplace/office sector, the report shows that office landlords and their brokers are hoping and praying for the perpetuation of the status quo?–?traditional credit tenants signing long term leases. Yet in the real world, how and where work is actually being accomplished is undergoing a rapid revolution. This transformation has been driven by mobility in all of its forms as well as the rise of the sharing economy… Read more »
The good news continues, but with enough doubts created so that the Fed is not likely to raise rates significantly or soon. That’s more good news. The latest data shows that the decline in the unemployment rate is not the whole story. Wage rates declined last month suggesting that the decline in the labor force participation rate has created a situation where the unemployment rate overstates the tightness in labor markets. This gives the Fed more leeway… Read more »