Search
 

It's All About Jobs

Everybody in real estate should keep an eye on the unemployment rate. The jobs picture will determine how bad the real estate markets get.  If companies keep up modest hiring and avoid layoffs, real estate can skate through the rough patch, and recent economic weakness will turn out to be relatively...

By Jonathan D. Miller | Updated on January 21, 2008

Everybody in real estate should keep an eye on the unemployment rate. The jobs picture will determine how bad the real estate markets get.  If companies keep up modest hiring and avoid layoffs, real estate can skate through the rough patch, and recent economic weakness will turn out to be relatively benign. But if companies start announcing hiring freezes and layoffs pick up, watch out. That’s when office markets suffer retrenchments, business travelers cut back on hotels, and consumers really shut down at the mall.  Only recently have employment numbers shown signs of deteriorating.

Expect all the gloom and doom talk, including recent grudging admissions about economic distress from the Administration, to coax business managers into play-it-safe rentrenchment mode. For any remaining Pollyannas out there, Tuesday’s huge rate cut certainly signals that there are problems to confront. For most companies, this is no time to launch new initiatives unless you’re in businesses that take advantage of potential distress. 

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.