Cities with Strong Commercial Real Estate Demand Boast More Diverse Job Markets
Nov. 20, 2018
In Q3 2018 we explored our diversification scores in relation to real estate measures from Colliers International’s Q3 U.S. Downtown Office Report.
Each quarter LinkUp publishes a Job Market Diversification Report, assessing the diversity of job listings across 150 Metropolitan Statistical Areas (MSA) in the U.S. by occupation, company, and industry. The report provides insights into job market health, employment trends, economic strength, and more.
In Q3 2018 we explored our diversification scores in relation to real estate measures from Colliers International’s Q3 U.S. Downtown Office Report. We found a strong relationship between job market diversification and commercial real estate demand.
Here are some key takeaways:
Markets in Utah and California continued to show some of the highest job market diversification scores
Former “Rust Belt” markets in the Midwest and East Coast had some of the lowest job market diversification scores
Two-thirds of MSAs have decreased their job market diversification scores from Q2 to Q3
As the U.S. economy gets closer to full employment, the depth and variety of job openings has decreased
More diversified job markets have stronger commercial real estate demand as defined by vacancy rate and absorption