Job Barometer Update: October Uptick
Job Barometer Update: October Uptick
The Grim Reaper might have been a proper Halloween costume for the Commercial Real Estate job market this October, but even that would have been an improvement over the no-cause-for-partying prior month. After a two-year low of 254 in September, Commercial Real Estate job postings rebounded slightly in October to 346 (see Figure 1). Although the number isn’t astounding when compared with the year-over-year high of 652, it represents continued stabilization in the commercial real estate job market over the past four months, when job postings averaged 363.
Figure 1: Commercial Real Estate Job Postings (February 2008 – October 2009)
Source: New postings of commercial real estate positions on key job boards from February 2008 to October 2009 (March excluded due to lack of data). Base = 11,378
Standing alone, the stabilization in commercial real estate job postings may not be a direct indication that economic recovery is eminent, but news this week from S&P’s Case/Shiller Index and the National Association of Realtors that home prices and sales both increased has led economists like Jan Hatzius of Goldman Sachs to believe that “The big-picture perspective is that things are improving.” Fundamentally, an improving economy will lead to an improving commercial real estate job market. (see Figure 2).
Figure 2: S&P/Case-Shiller Home Price Index
Source: Standard and Poor’s and FISERV – August 2009
While the number of job postings on major job boards like Monster, Career Builder and Select Leaders and are a good indicator of what’s happening in commercial real estate, these job boards can’t be looked to as the only source of jobs related to commercial real estate. According to Bradley G. Richardson, a partner at executive-search firm Kaye/Bassman International Corp., many employers have cut back on advertising jobs online because they are overwhelmed with applications. “Instead, (employers) are relying on word of mouth and referrals to draw a more manageable number of applicants, which requires more networking on the part of the job seeker—even tapping into people you don’t know well, ” argues Richardson.
Although often overlooked, social networking sites like LinkedIn also provide various opportunities to interact with professionals in the commercial real estate industry through “connections” with colleagues past and present. As knowledge of job opportunities has temporarily migrated away from on-line posting boards, social networking sites are stepping in to provide information on upcoming events and job opportunities.
A sector within commercial real estate where many new jobs are still being posted is accounting and control. As companies look to find creative ways to cut costs and manage their portfolios more efficiently, jobs in accounting and control have seen an increase in demand. Nearly 35% of all jobs posted in October were in these two roles, suggesting that greater oversight and management of portfolio funds are areas many companies are looking to strengthen (see Figure 3). On the flip side, jobs in mortgage brokerage and origination accounted for less than 5 and just over 10 percent of job postings, respectively. These lackluster numbers provide a stark reminder that the credit crunch in commercial real estate still exists. Although deals are being done, opportunities for new hires are few and far between.
Figure 3: Top 10 Job Functions in Finance
Source: New job postings in Finance on key job boards from August 2009 to October 2009. Base = 1,082
Author: Sam Bechthold, Cornell Program in Real Estate Student