For better or worse, the commercial real estate industry is fundamentally tied to the strength of the U.S. economy. In June the labor market created more jobs than expected, and while wage growth lagged, those new jobs will drive demand across the industry.
All sectors stand to benefit from increased job creation, but the office sector could gain the most — those new hires need somewhere to work, after all. At the same time, the multifamily market is heating up. That’s good news for owners but bad news for tenants, many of whom are struggling in tight markets plagued by a lack of affordable housing.