NGKF Friday Market Insight - Population
Wednesday, April 26, 2017
The commercial real estate industry focuses on job growth as the key driver of demand for space, and well it should. Workers occupy office and industrial buildings, earn wages that pay for apartments and hotel rooms, and buy merchandise that flows through warehouses and shopping centers.
Job growth depends on a strong labor force from which employers can hire, especially now when workers with the right education and skills are hard to find. Annual labor force growth hit a peak of 2.6% in the 1970s, as baby boomers and women went to work in great numbers, with growth declining every decade since then. From 2015 to 2025, labor force growth will fall to just 0.2% per year, as boomers age out of their working years1. READ MORE...