Michelle Matteson
Employment Picture
Total employment from increased by 1.7 percent (2,517 people) September 2016 to September 2017, while total unemployed decreased by 14.4 percent (1,102 people).
Development
The share of industrial properties under construction decreased by 16 percent month-over-month. New Retail construction dropped 11.2 percent, and Office developments fell by 8 percent compared to August 2017.
National Vacancies
Forecasts show that, in the second quarter of 2018, net absorptions are expected to decrease in every region, with the most significant change expected to come from the Northeast, followed by the South with 13.8 percent.
CMBS Delinquencies
New delinquencies totaled $1.1 billion during the month compared with $709 million in resolutions.
Higher-Value Assets Outperform Others in Same Country
Using MSCI global real estate dataset, we find evidence that higher-value assets have been more likely to outperform other assets in the same country and sector than lower-priced assets.
Development
Month-over-month, the percentage of industrial properties under construction decreased by 20.2 percent, followed by an 8.1 percent decrease for retail properties.
Employment Picture
The total number of employed people from August 2016 to August 2017 increased by 1.2 percent, or 1,772 people, while the total number of unemployed people decreased by 8.9 percent, or 709 people.
CMBS Delinquencies
With historic flooding from Hurricane Harvey to Harris County (Houston and its surrounding suburbs) we reviewed the S&P Global Delinquent exposure.
National Vacancies
Year-over-year, vacancy rates for retail markets decreased in almost all the regions, with the largest change coming from the Midwest, from 6 percent to 5.6 percent in the second quarter of 2017.
Industrial Demand
Compared to July 2016, new orders for all manufacturing industries increased by 5.4 percent or approximately $22.6 billion in July 2017.