Jobs are the lifeblood of commercial real estate. When employment rises, so does demand for office space. In Cushman & Wakefield’s analysis, Charlotte ranked high compared to many of its peer nationally. Charlotte outperformed the national average in terms of job growth, which has benefited the office market, putting it in the “Overachiever” category.
Rankings were based on a composite of two metrics: (1) the percentage change in total employment from 2009 to 2018 and (2) the number of jobs added over that same time period. Using these two metrics, we can account for both the rate of growth (percentage change) and the actual number of jobs – which is the true driver of demand. We averaged the two rankings for each MSA to arrive at a composite ranking.
The Southeast has long been the fastest growing region in the nation. There are nine MSAs in the Southeast region in this study comprising nearly 13 million workers. Since 1990, employment in these areas has increased more than 73%, making it the fastest growing region in the nation. The Southeast has long been a magnet for people looking for a more favorable climate than that of the Northeast and Midwest. As the population has moved south, so have jobs. With those jobs have come healthy levels of absorption, rent growth and office property values.