A Key CRE Market Fundamental Shows Signs of Strength
Demand for office space is expected to continue in Miami as unemployment numbers fall in Miami-Dade County. Recently released data highlights the strength of a key market fundamental in the CRE real estate market: jobs creation.
Miami-Dade added 18,700 new payroll jobs in the past year and unemployment decreased to 5 percent in April, from 5.4 percent the previous month, according to statistics released by the Beacon Council, a quasi-governmental agency in Miami.
“We’re encouraged as we continue to see year-over-year job growth across sectors,” said Jaap Donath, Ph.D., Senior Vice President, Research & Strategic Planning for the Miami-Dade Beacon Council. “And we’re pleased to see the Miami metro area ranked No. 1 in startup activity in the U.S., according to the Kauffman Foundation’s 2017 index. While we are pleased that our unemployment rate is descending, unemployment figures may not take into account our economic vitality as it relates to start-ups and the contractors and service providers that they employ.”
The Numbers Analyzed
Miami-Dade created 18,700 new nonagricultural payroll jobs (not-seasonally adjusted), from April 2016 to April 2017, which was a 1.6 percent increase. Miami-Dade continues to show year over year gains. Improvements in the non-farm payroll jobs can be found in a variety of sectors. Between March 2017 and April 2017, Miami-Dade increased nonagricultural payroll jobs by 1,700 or 0.1 percentage point.
The not-seasonally adjusted unemployment rate for Miami-Dade County was 5.0 in April 2017, which was a 0.4 percentage point decrease from March 2017 at 5.4 percent. This was the second time that unemployment reached 5.0 percent since the recession. Compared to last year April, there was also a 0.4 percentage point decrease with the unemployment rate at 5.4 percent.
Source: Miami-Dade Beacon Council