National Office Absorption Turns Negative With More Dark Clouds On Horizon
(SANTA ANA, CA) - Just when you thought the national office market might be headed for some stabilization signs, the U.S. Bureau of Labor comes up with more discouraging news.
In August, the most recently audited month, the labor market shed 84,000 net payroll jobs, bringing year-to-date losses to 605,000, notes Bob Bach, Senior Vice President, Chief Economist, Grubb & Ellis Co.
Bach says in the key office-using sectors of information, finance, and professional and business services, losses this year total 352,000 jobs. Nearly two-thirds of that total is in temporary help services, a category with "a tenuous link to demand for office space," Bach says.
"That leaves full-time office jobs down by 128,000, which translates into potential negative net absorption of 20 to 25 million sf. Absorption turned negative in the second quarter at -3.1 million sf, suggesting more losses may be coming."
Bach also used Grubb & Ellis research data to prepare his findings. His September outlook is expected to arrive by mid-October.