Baltimore’s steady economic recovery continued in September as payrolls grew by 2.1 percent compared to the previous year and the unemployment rate edged downwards to 5.3 percent.

1. Total jobs vs. unemployment rate: Baltimore
Source: JLL Research, BLS
Office employment trends (12-month change) :Baltimore
Source: JLL Research, BLS
Industrial employment trends (12-month change) :Baltimore
Source: JLL Research, BLS
• Non-farm employment across the Baltimore metro area totaled nearly 1.4
million, which is up 2.1 percent compared to the previous year and 3.5
percent higher than the previous cyclical peak reached in late 2007.
• Office occupying sectors in Baltimore have overall generated consistent
growth, however, Professional & Business Services faltered earlier in 2015
as the sector experienced negative movement. In a change of long standing
trends, Financial Activities has emerged over the past several months as the
leader in office occupying net gains.
• After sluggish growth through the beginning of 2015, industrial occupying
sectors of the Baltimore economy began to post significant payroll gains in
the second and third quarter.
• National payrolls grew in September by 142,000 jobs and August was
downwardly revised to 136,000. Office-using industries contributed just
43,000 jobs to September’s growth, continuing a trend of somewhat muted
office-using employment gains.
• Unemployment for both the country as a whole and college graduates
remained flat at 5.1 and 2.5 percent, respectively. Total unemployment fell
sharply by 30 basis points to 10.0 percent and will almost certainly reach the
single digits at some point later this year.
Real estate implications
After muted growth for nearly 18 months, Trade, Transportation & Utilities finally
posted significant job growth, which suggests the recent uptick in industrial
leasing may be sustained through the fourth quarter. The increased demand
from warehouse and logistics users will be needed to fill the development
pipeline, which is largely speculative. For the office market, financial tenants
have become increasingly active as the sector approaches its previous level of
peak employment. Submarkets with a substantial base of financial tenants, such
as the CBD, Owings Mills and Columbia are set to benefit from the trend.
Employment Update
Baltimore| September 2015
5.1%U.S. unemployment
1.8%U.S. 12-month job growth
5.3%Baltimore unemployment
2.1%Baltimore 12-month job growth
5.1%Maryland unemployment
1.7%Maryland 12-month job growth
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
1,400,000
2000 2002 2004 2006 2008 2010 2012 2014
unemployment rate
total jobs
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
2011 2012 2013 2014 2015
Professional & Business Services
Information
Government
Financial Activities
-10.0
-5.0
0.0
5.0
10.0
2011 2012 2013 2014 2015
Manufacturing
Trade, transportation & utilities
Mining, Logging & Construction

2. News on the street
Baltimore businesses expanding, contracting, etc.
CGC Holdings Inc. Ι Commercial Real Estate: Headquarters Relocation
CGC Holdings Inc., that parent company of Capital Produce Co., has signed a long-term lease to occupy the new 160,000-square-foot building that is part of the
expansion of the former giant food warehouse in Jessup. The development is set to break ground this month, and is being developed by Manekin LLC. The building
will house CGC’s headquarters and distribution facility.
Chesapeake Real Estate Ι Commercial Real Estate: Development
The Perryman Logistics center that has been labeled the largest Class A distribution site on the market in Maryland is nearing completion. This 571,000-square-foot
warehouse is scheduled for delivery in mid-December with an asking price of $4.95 per square foot triple net. The building will include 120 loading docks, and a
parking lot that can accommodate up to 244 trailers or 518 cars.
American Real Estate Partners Ι Commercial Real Estate: Disposition
After a dramatic drop in vacancy, American Real Estate Partners sold One South Street to True North Management Group for $64.3 million. The real estate
investment management firm, located in White Plains, N.Y., purchased the building after vacancy rates plummeted from 39.5 percent to today’s 11.5 percent with a
price of approximately $134 per square foot.
Wexford Science and Technology Ι Commercial Real Estate: Development
Wexford Science &Technology is seeking $17.5 million in tax-increment financing bonds in order to build an eight-story 250,000-square-foot building at the
University of Maryland, Baltimore, BioPark. The Cambridge Innovation Center, a business incubator that provides co-working space to various tenants, is set to
serve as the 120,000-square-foot anchor tenant for the new building.
KEYW I Cyber Security: Expansion
The Hanover cyber security firm’s new building developed by COPT on Milestone Parkway delivered with KEYW taking the additional 88,500 square feet of
expansion space this fall. The new building will house KEYW’s Advanced Cyber Research and Training Center, where the firm will develop tools and analytics to
help protect and defend the United States.
Klein Enterprises Ι Commercial Real Estate: Development
After the acquisition of 7 Hooks Lane earlier this year, Klein Enterprises plans to construct a two-story, 40,000-square-foot office atop an existing parking garage at
the neighboring Commerce center in Pikesville. This deal is to be leveraged on the basis that it can provide Baltimore County a right of way needed to add a second
lane on the bustling Reisterstown Road stretch.
Industry employment stratification
Baltimore
Source: JLL Research
©2015 Jones Lang LaSalle IP, Inc. All rights reserved.For more information, contact: Patrick Latimer | patrick.latimer@am.jll.com and Michael LaPaglia | michael.lapaglia@am.jll.com
Employment statistics
Baltimore
Sept 2013 Sept 2014 Sept 2015
Total Non-farm
Employment
1,335,100
1.1%
1,352,700
1.3%
1,380,500
2.1%
Unemployment Rate 6.7% 5.7% 5.3%
Baltimore Supersectors Sept 2013 Sept 2014 Sept 2015
Mining, Logging & Construction 72,100 3.1% 74,700 3.6% 77,300 3.5%
Manufacturing 56,200 -3.6% 54,900 -2.3% 56,100 2.2%
Trade, Transportation,
& Utilities
234,700 0.9% 235,600 0.4% 238,100 1.1%
Information 16,800 -1.8% 15,900 -5.4% 15,800 -0.6%
Financial Activities 76,700 2.0% 77,500 1.0% 81,200 4.8%
Professional & Business
Services
219,100 3.4% 224,200 2.3% 227,500 1.5%
Educational & Health Services 249,800 1.8% 254,300 1.8% 261,300 2.8%
Leisure & Hospitality 128,500 2.6% 134,600 4.7% 139,000 3.3%
Other Services 53,600 -1.7% 53,600 0.0% 52,600 -1.9%
Government 227,600 -1.1% 227,400 -0.1% 231,600 1.8%
19%
17%
17%
16%
10%
6%
6%
4%
4% 1%
Educational & Health Services Trade, Transportation & Utilities
Government Professional & Business Services
Leisure & Hospitality Financial Activities
Mining, Logging & Construction Manufacturing
Other Services Information