The SelectLeaders/Cornell Fall 2008 Job Barometer

The SelectLeaders/Cornell Fall 2008 Job Barometer continues to attract national attention for its detailed report on the commercial real estate job market.  The Wall Street Journal recently published an article highlighting insights presented in the 2nd Annual Job Barometer, which was unveiled during the recent 26th Annual Cornell Real Estate Conference held in Ithaca, NY.

The Job Barometer, which is sponsored by SelectLeaders, real estate’s leading job site, provides a monthly snapshot of the commercial real estate job market and is compiled into an annual report each fall.  A team of Cornell faculty and research specialists assesses all commercial real estate job postings during the first week of each month from eight primary internet job boards that serve the real estate industry.  These job postings—5,102 in total during the first half of 2008—are then coded to determine the real estate sector, business field, job function, location, and education level requirement, among other points.  With this large amount of data, the research team was able to identify myriad real estate job trends, opportunities and threats, and also several shocking findings.

“Nowhere else can you find specific, relevant data on the state of the commercial real estate job market,” said Dr. David Funk, Director of Cornell’s Program in Real Estate, speaking of the Job Barometer, adding, “Real estate professionals – and students – are finding that the Job Barometer provides insight into employment trends as well as a roadmap of where to look for their next real estate job.”
Key findings from this fall’s Job Barometer include:

The commercial real estate job market showed surprising resilience in the face of negative news across all sectors of the economy in the first half of 2008 yet has experienced a dramatic 46% decline in job postings since June.

• The apartment market was the one, and only sector that did not decline.  In fact, nearly 40% of the total real estate jobs posted was in the multi family sector.  In addition, there is an undeniable correlation between the states with the highest numbers of foreclosure filings, and states with the highest numbers of Multi-Family job postings, suggesting the end of the American dream of single family home ownership for many.
• The first and second city dominance of New York and Chicago metro areas are losing their hold to the economic strength of Texas oil and Florida’s senior citizens.  Job losses in real estate finance and the homebuilding industry were disproportionately felt in New York and California respectively.
• The South is the place to be for the most hiring activity.  For opportunity, look for jobs in accounting/controls, property management, and leasing. 
• In 2008, 43% of all applicants sought commercial real estate jobs in New York with 74 resumes submitted for every posting, yet only 11% of all jobs are in New York – down precipitously from 18% the year before..  For the highest probability of success, applying for positions in the Midwest offers a much better chance of getting the job.
• Real estate’s talent gap is deepening as graduate students are already looking elsewhere as banking jobs dry up, historically the most attractive alternative for the best and the brightest looking to begin their careers. This will prove to be the singular most significant effect of the current crisis as it will impact our industry 10 and 20 years from now.

To read the full report visit: http://realestate.cornell.edu/ee/images/uploads/static_page/Sl_Job_Barometer_FINAL.pdf