Job slowdown fails to halt growth of U.S commercial property market | 6 September 2012
A slowdown in job creation in the United States is failing to halt the growth of its commercial property market, according to a new report.
A quarterly analysis of the market by the National Association of Realtors has suggested that vacancy rates are dropping and rents are on the up in all sectors.
Yet, in an interview with propertywire.com, the group’s chief economist Lawrence Yun admitted that these figures would have been a lot more positive if the U.S jobs market hadn’t dropped so dramatically.
He explained: “Job creation in the second quarter was about half of what we saw in the first quarter, which is moderating demand in the office sector.
“Industrial and warehouse space is holding on better because imports and exports have advanced. While exports to Europe generally down, trade has been robust with India, China and other Asian nations, along with Brazil, Mexico and our strongest trading partner Canada.”
Pressofatlanticcity.com reports that sales and leasing of commercial property are both on the up. Yet, many businesses are finding themselves unable to invest in buildings because it has become harder to secure finance from banks.
It is also thought that many business owners are waiting until the U.S government decides whether or not to double capital gains tax from 15 to 30 per cent.
Written by Joe Elvin on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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