Is a Strong Jobs Report Bad News for CRE
What Does January’s Surprising Jobs Report Mean For CRE?
January Employment Data Blows Past Expectation
The first jobs report of 2023 recorded 517,000 additional jobs in the economy, roughly double the predictions
This is just the second time in more than 20 years hiring has exceeded 500,000 new positions, other than the pandemic recovery
What This Means For The Federal Reserve
The media ran two directions with the report, first, that the labor market gains suggests economic strength, and second that too much labor market growth will induce stronger Fed action in the months to come
Chairman Powell appeared to take a more dovish tone during the last press conference, but the jobs report could shift the Fed’s approach during the next meetings
How will this Impact CRE Investors
Despite fears of more intense rate hikes, strong employment growth has powered CRE space demand historically, especially within the core property types
In the long-run, employment growth is a positive for CRE investors, even if financial markets need time to calibrate in the near-term
*Through January 2023
Sources: Marcus & Millichap Research Services, BLS
