There’s been a lot of attention on job creation in the US right now.
Specifically, a few major corporations have made announcements that affect a variety of commercial real estate industry sectors around the country.
AmazonWhenever the ecommerce giant expands, it gives a boost to warehouse and distribution center assets. And it looks like more major expansion is on the way: Amazon has plans to hire 100,000 new workers over the next 18 months, and the company has already opened a number of new industrial assets across the country.
There is also speculation that much of this hiring is in preparation for more brick-and-mortar retail stores, although they haven’t announced the exact number and placement of new locations yet.
WalmartWalmart is also adding more workers. The discount giant plans to hire 10,000 employees and open several new stores and ecommerce facilities. Not only would this help the retail and industrial sectors, but Walmart’s growth is also reportedly going to create 24,000 new construction jobs.
It’s important to note as well that new and relocated Walmart stores are a magnet for other tenants who want to pick up on the retail giant’s traffic.
General MotorsThough the auto industry has been up and down over the years, General Motors has some good news that could help the industrial sector of commercial real estate. It plans to hire 7,000 workers, several at factories. In addition, GM says it plans to spend $1 billion investing in those factories, and the automaker has also announced intentions to create more office jobs.
KrogerIn a more surprising move, grocery company Kroger—which owns Ralphs, Harris Teeter and other traditional chains—plans to add 10,000 positions in its stores. This is despite the fact that traditional grocery stores have been under fire from several competitors lately, including drug and dollar stores that now sell select food items, lower-cost alternatives like Aldi, and the higher end stores such as Whole Foods. It’s certainly encouraging for owners of grocery-anchored shopping centers that this company with nearly 2,800 supermarkets is adding workers.
What it all meansA healthy hiring market can help all sectors of commercial real estate, especially if it’s done by the large firms named above. It doesn’t just help the direct employment picture for the property types affected, either. With job growth on the horizon, the hiring helps many ancillary commercial real estate businesses. More employment means more consumer confidence, leading to increased spending at a variety of stores and restaurants, and it helps the multifamily sector with occupancy and the building of new assets.
We can’t predict the full effects of these announcements, but they’re important to note and monitor if you want to be a market expert for your clients.