What The Latest Jobs Data Release Means For CRE Investors

Job Market Sustains Momentum

• The economy added more than 260,000 positions in October, putting the country on pace for the second strongest job growth year on record
• While the Fed has mentioned the need to cool job growth, current wage gains are a small part of inflationary pressure

Nuances in The Competition For Workers

• Small businesses and large companies expanded their payrolls since February 2020, but mid-sized firms shrunk
• Despite high profile layoffs at tech firms, the labor market is gaining in aggregate, supporting CRE space demand

How this impacts CRE Looking Forward

• Small business employment growth is poised to support suburban space demand
• Cooling job numbers in future months may restrain household formation, but the long-term outlook is positive once uncertainty clears

*Through October
Sources: Marcus & Millichap Research Services, BLS

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