Residual Covid-19 Ripples Still A Significant Factor for CRE
Worker Shortage Shrinking, But Far From 2019 Level
- There are 9.6 million job openings in the economy, roughly 2.5 million higher than in 2019
- The shortage will impact business’ ability to grow while reinforcing upward wage pressure and remote work practices
Rethinking Supply Chains In the Long-Term
- While supply chain frictions have eased, a shift toward bringing production closer to U.S. consumers occurred
- This will most directly impact industrial properties, but will aid other property types through job creation
Behavioral Changes Accelerate Shift to Suburbs
- Apartment, retail, and office vacancy rates are lower in suburban areas nationally than CBDs in 1Q 2023
- This trend is supported by both a large population of millennials aging into prime family formation years, and an uptick in marriages after the pandemic
*Through April; Job openings through March
Sources: Marcus & Millichap Research Services, BLS
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