Job Barometer Update: November 2011

CONTINUED EMPHASIS ON INCREASING PROPERTY VALUE DRIVES COMMERCIAL REAL ESTATE JOB MARKET

Ithaca, NY.  –Commercial real estate job postings increased in 2011 by approximately 34% compared to 2010 despite significant uncertainty in the overall national economy. The increase in job postings comes in an uncertain environment as the global economy slowed due to Europe’s precarious debt situation, a sobering global growth outlook and an unpredictable regulatory environment.  However, it is important to note the Job Barometer (JB) did find a downward trend in August and September as the world’s attention was focused on politics with the United States debt ceiling and Europe’s debt situation.  In contrast, the national overall unemployment remained relatively flat in 2011 and as of September 2011 was at 9.1%.

The strongest growth per job function in 2011 compared to 2010 were in asset management, property management, and leasing jobs. This is partly due to organizations continuing to take an aggressive approach to manage costs more efficiently while providing better service at the asset level. As a result, the type of job postings reflect the fact that managing and keeping tenants is an integral component of a successful and profitable portfolio. 

In contrast, the JB continues to see a decline in development jobs. In 2008, development jobs accounted for 14% of the job postings whereas in 2011 only 5% of the jobs were in development.

As anticipated, jobs candidates continued to target jobs in areas where they can drive existing property value. Asset management topped the charts for most resume submittals received in 2011, 2010, and 2009.  It is interesting to note that Investment Banking went from 3rd place on the most applied job categories in 2008 to 16th place in 2011, with many of these job seekers looking to Asset Management. Geographically, the top most- applied-to-states remain New York, California, Texas and Florida.  Washington DC made the list for the first time in 2010 due to the strong commercial real estate market. 

The real estate industry accounts for 28% of the overall Gross Domestic Product (GDP) in the United States.  Prior to the introduction of the Job Barometer, there was no reliable measure of commercial real estate employment trends. SelectLeaders and the Cornell University Program in Real Estate have filled this gap by joining forces to provide research insight into the employment market on a periodic basis, as an overall portrait of the employment outlook for the real estate industry.

The JB provides an enlightening focus on what has happened in commercial real estate since the Great Recession, but, more importantly, it establishes a foundation for an evaluation of how the new financial order will affect employment and hiring trends in 2012.
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