American cities face an increasingly uncertain future in what is already an uncertain time for when and how to reopen businesses and public spaces during the coronavirus outbreak. Elevated concerns over density and a shift in the mindset about remote work underscore the need to assess what matters most to urban residents. Measuring the value of urban amenities such as arts, cultural activities, recreation opportunities, and overall quality of life and how they relate to a neighborhood’s perception and satisfaction is more important than ever as cities look for a way forward in the post-pandemic future. A landmark Urban Institute report, commissioned by the Knight Foundation, surveyed 11,000 residents across 26 metro areas before the national coronavirus shutdown to understand what determines residents’ sense of attachment and connection to their city or community. It examines the trade-offs people make and the role they think amenities play in their satisfaction of locations. Click to read more at www.forbes.com.
The Texas economy gained 250,900 nonagricultural jobs from March 2019 to March 2020, an annual growth rate of 2 percent, higher than the nation’s employment growth rate of 1 percent (Table 1 and Figure 1). The nongovernment sector added 216,200 jobs, an annual growth rate of 2 percent, also more than the nation’s employment growth rate of 1 percent in the private sector. Click to read more at www.recenter.tamu.edu.
The impact of new development and of the ongoing operations of existing commercial real estate buildings in the United States – office, industrial, warehouse and retail – has grown to support 9.2 million American jobs and contribute $1.14 trillion to the U.S. GDP in 2019, an increase from 8.3 million jobs and a contribution of $1.0 trillion to GDP in 2018. Based on the existing stock of commercial buildings — totaling 49.6 billion square feet at the end of the third quarter of 2019 — direct spending on building operations totaled an estimated $173.0 billion and contributed $464.0 billion to GDP. In addition, 563.3 million square feet of new office, industrial, warehouse and retail space newly constructed in 2019 has the capacity to house 1.4 million new workers with a total estimated annual payroll of $83.5 billion. The findings were presented in the annual study, “Economic Impacts of Commercial Real Estate, 2020 U.S. Edition,” released this week by the NAIOP Research Foundation. The study measures the contributions to GDP, salaries and wages generated, and jobs created and supported from the development and operations of commercial real estate. The study broke out several key measures by commercial real estate industry sector: Click to read more at www.naiop.org.
Houston’s 2020 commercial real estate market outlook is positive with a few challenges in the office sector. The metro’s economy continues to recover from a lackluster energy market amid a general slowdown of global trading; nonetheless, job growth should remain positive through 2020.
Despite global trade stagnation, Port Houston, a major economic driver,
reports increasing volume and value, which should carry over into 2020 to remain among the top ports in foreign and domestic tonnage. Click to read more at www.rednews.com.
The mortgage banking and investment sales pros with Berkadia expect the multifamily sector to remain a strong one throughout 2020. But what could bring at least a minor hiccup to the sector? Interest rates and the presidential election. That’s according to Berkadia’s 2020 Outlook Powerhouse Poll, a collection of insights from more than 150 Berkadia investment sales brokers and mortgage bankers across 60 offices. According to the poll, investment sales brokers and mortgage bankers expect interest rates and the presidential election to have the greatest impact on multifamily investing and financing this year. A total of 86 percent of bankers cited interest rates in the study, while 44 percent pointed to the election. Rounding out the top three expected major trends, 44 percent of bankers cited GSE reform. For trends impacting multifamily investing, 77 percent of investment sales brokers cited interest rates, 63 percent the presidential election and 40 percent debt underwriting. The survey found, too, that 91 percent of mortgage bankers expect GSEs to see the most activity in 2020. Click to read more at www.rejournals.com.
It’s Bat City versus the City by the Bay in a new projection for the growth of office jobs in 2020. Commercial real estate services company CBRE predicts Austin will see a 2.6 percent rise in office jobs this year compared with last year. That puts Austin in first place for anticipated office-job growth in 2020 among U.S. markets with at least 37.5 million square feet of office space. Office jobs include those in the tech, professional services, and legal sectors. Austin edges out San Francisco for the top spot in CBRE’s forecast, published January 9. The company predicts a 2.5 percent increase in San Francisco office jobs this year versus last year. Personal finance website WalletHub recently ranked San Francisco and Austin third and fourth, respectively, on its list of the U.S. best cities to find a job. “It’s not surprising that the forecast for Austin is extremely bright, and we expect that technology companies and professional firms will still drive the demand for more [offices],” Troy Holme, executive vice president in the Austin office of CBRE, says in a January 22 release. Click to read more at www.austinculturemap.com.