Economy

Real Estate Recovery is All About Job Growth

PRINCETON, NJ, November 26, 2012 – In his latest white paper, “Real Estate Recovery is all About Job Growth,” NAI Global Chief Economist, Dr. Peter Linneman, outlines that without a robust job recovery, the real estate market will continue to be slow to recover. He states, “After peaking in October 2009 at 10% (revised), the U.S.unemployment rate stood at 7.8% at the end of September 2012, primarily due to 100,000 people leaving the labor force since June. Instead of a robust recovery spurred by the largest peacetime federal spending increase, the economy limps forward under the burdens of excessive government spending and regulatory incursions.”

He also cites, “The single most important indicator for real estate is the proportion of lost jobs that has been recovered to date. This is because at the beginning of the recession, almost all property sectors were in balance. As the recession set in, we lost 8.8

million jobs, and only as these jobs are recovered will real estate space demand approach 2008 levels.”

“Thus far, the U.S. has recovered 48.5% of Payroll Survey jobs and 58% of Household Survey jobs, leaving us 16

million jobs (1.9 standard deviations) below the historical growth trend. The U.S. added just 437,000 jobs over the last three months, a pace which is in line with the tepid 1.8 million jobs gained over the trailing 12 months through September. At the current pace, we will not recover all lost jobs until 2015.”

The white paper also addresses the health of the U.S. real estate recovery being tied to the strength and timing of the nation’s macroeconomic recovery and cites “the best news is that single-family and multifamily housing starts finally are on a clear ascent.”

A PDF of the white paper can be downloaded here:


About NAI Global

NAI Global is one of the leading commercial real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 commercial real estate professionals and 350 offices in over 55 countries, and completes over $45 billion in annual transaction volume. Since 1978, NAI Global clients have built their businesses on the power of NAI’s expanding network. NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com.

NAI Global Expands Into the Northeastern Caribbean with NAI Puerto Rico

NAI Global, the premier managed network of commercial real estate firms and one of the largest real estate services providers worldwide, announces its expansion of coverage into the Commonwealth of Puerto Rico, with the addition of NAI Puerto Rico.

Headquartered in San Juan, NAI Puerto Rico is a full-service commercial firm offering a complete range of real estate services including tenant representation, marketing research, location consulting, project management, lease renewals/restructures and acquisitions/dispositions

NAI Puerto Rico was founded by Hector J. Aponte SIOR, an industry veteran with over 15 years of experience in the commercial real estate industry. Hector has completed a wide array of major real estate transactions in Puerto Rico, for private and government clients such as Bayer, Sanofi, Publicis, ConAgra Foods, WPP, CSA Group, Marsh & McLennan, Starbucks Coffee, U.S. Army, IRS, and the EPA.

“By joining NAI, we are expanding our capabilities and resources to many international markets; this will definitely boost our services and will keep us on top,” said NAI Business Director, Mr. Hector J. Aponte. “NAI gives us new technology, tools, shared resources, marketing, and access to over 350 offices worldwide, which will enable us to develop new opportunities for clients looking for extensive representation or international resources.”

“This is a key market for us, especially for our corporate and investor clients seeking to take advantage of the commonwealth’s attractive tax policies,” said NAI Global President, Jeffrey Finn. “With Hector and his team at NAI Puerto Rico, we now have some of the best real estate experts in that region to serve our clients. I am excited about our new partnership and look forward to working together in the coming months and years.”

NAI Global is among the largest commercial real estate services organizations in the world, comprising 5,000+ professionals in 55 countries in more than 350 offices. NAI advisors such as NAI Puerto Rico work in tandem with its global management team to ensure clients strategically optimize their real estate assets. NAI offices complete over $45 billion in combined transactions annually and manage over 300 million square feet of commercial space.

NAI Puerto Rico is located at Ponce de Leon Avenue #1072, San Juan 00928

About NAI Global

NAI Global’s extensive services include corporate real estate services, brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. To learn more, visit www.naiglobal.com. Follow us on Twitter (@NAIGlobal) and Facebook.