Office-using employment sectors have experienced modest employment expansion over the last year, recording an annualized net gain of 2,900 jobs across the metro. Employment gains were led by the professional and business services sector, which added 4,700 jobs year-over-year.
Call Girls in Pitampura Delhi 💯Call Us 🔝8264348440🔝
JLL Cleveland Office Employment Update February 2015
1. Office real estate implications
Sources: JLL Research, Bureau of Labor Statistics
Job growth/loss by sector (12-month change)
Cleveland
-1,400
-900
-500
-400
600
700
800
3,100
4,700
5,700
-3,000 -1,000 1,000 3,000 5,000 7,000
Trade, Transportation & Utilities
Financial Activities
Information
Government
Other Services
Educational & Health Services
Manufacturing
Mining, Logging & Construction
Professional & Business Services
Leisure & Hospitality
Number of Jobs
Rightsizing is top of mind for many of Cleveland’s office tenants. A move
towards open floor plans with numerous breakout rooms and collaboration
spaces is also a prevailing trend. As such, the market is seeing more
relocations than renewals. And landlords are providing competitive
improvement allowances for tenants to outfit their new space. Built-to-suit
activity is also on the rise. Companies such as Eaton, American Greetings and
Omnova have all gone this route. In this case, occupiers are able to start with
a blank canvas and create an environment tailored to their individual corporate
culture.
Tenants are demanding newer office product. Many are finding it difficult to
outfit aging offices with modern technology infrastructure and many older
offices do not sync with the sustainability initiatives of today’s corporates.
While tenants will pay a premium for new product, the benefits of large floor
plates, energy efficient offices and modern technology infrastructure outweigh
the rent premium in the eyes of most corporate occupiers.
Total jobs vs. unemployment rate
Cleveland
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
850,000
900,000
950,000
1,000,000
1,050,000
1,100,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Peak: 1,083,529 jobs
3.3%
unemployment rate
total jobs
-15.0
-10.0
-5.0
0.0
5.0
10.0
15.0
2010
2011
2012
2013
2014
Financial Activities Professional & Business Services Information Government
Office employment trends (12-month change)
Cleveland
Office employment update
Metro Cleveland . February 2015
6.0%Cleveland unemployment
1.2%Cleveland 12-month job growth
5.7%U.S. unemployment
2.3%U.S. 12-month job growth
• According to the most recent estimates from the BLS, total non-farm
employment in Cleveland stood at ~1.0 million payrolls, representing
an annualized increase of 12,400 jobs or 1.2 percent. Meanwhile,
unemployment decreased 100 basis points year-over-year to 6.0
percent.
• Office-using employment sectors have experienced modest
employment expansion over the last year, recording an annualized net
gain of 2,900 jobs across the metro. Employment gains were led by the
professional and business services sector, which added 4,700 jobs
year-over-year.
• Total U.S. nonfarm employment increased by 257,000 jobs in January,
and upward revisions were made to prior months totaling 147,000 jobs.
Gains in January were led by retailers, construction firms and health-
care companies.
• Meanwhile, the U.S. unemployment rate decreased 90 basis points
from the prior year to 5.7 percent, the fifth month in a row below 6.0
percent. Labor force participation ticked up slightly to 62.9 percent but
remains at its lowest level since 1978.