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Total jobs vs. unemployment rate: Baltimore
Source: JLL Research, BLS
Office employment trends (12-month change) :Baltimore
Source: JLL Research, BLS
Industrial employment trends (12-month change) :Baltimore
Source: JLL Research, BLS
• Non-farm employment across the Baltimore metro area totaled nearly 1.4million, which is up 2.1 percent compared to the previous year and 3.5percent higher than the previous cyclical peak reached in late 2007.
• Office occupying sectors in Baltimore have overall generated consistent
growth, however, Professional & Business Services faltered earlier in 2015as the sector experienced negative movement. In a change of long standingtrends, Financial Activities has emerged over the past several months as theleader in office occupying net gains.
• After sluggish growth through the beginning of 2015, industrial occupyingsectors of the Baltimore economy began to post significant payroll gains inthe second and third quarter.
• National payrolls grew in September by 142,000 jobs and August wasdownwardly revised to 136,000. Office-using industries contributed just43,000 jobs to September’s growth, continuing a trend of somewhat muted
office-using employment gains.• Unemployment for both the country as a whole and college graduates
remained flat at 5.1 and 2.5 percent, respectively. Total unemployment fell
sharply by 30 basis points to 10.0 percent and will almost certainly reach thesingle digits at some point later this year.
Real estate implications
After muted growth for nearly 18 months, Trade, Transportation & Utilities finallyposted significant job growth, which suggests the recent uptick in industrialleasing may be sustained through the fourth quarter. The increased demandfrom warehouse and logistics users will be needed to fill the developmentpipeline, which is largely speculative. For the office market, financial tenantshave become increasingly active as the sector approaches its previous level ofpeak employment. Submarkets with a substantial base of financial tenants, suchas the CBD, Owings Mills and Columbia are set to benefit from the trend.
Employment Update
Baltimore| September 2015
5.1%U.S. unemployment
1.8%U.S. 12-month job growth
5.3%Baltimore unemployment
2.1%Baltimore 12-month job growth
5.1%Maryland unemployment 1.7%Maryland 12-month job growth0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
1,400,000
2000 2002 2004 2006 2008 2010 2012 2014
unemployment rate
total jobs
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
2011 2012 2013 2014 2015
Professional & Business ServicesInformationGovernmentFinancial Activities
-10.0
-5.0
0.0
5.0
10.0
2011 2012 2013 2014 2015
Manufacturing
Trade, transportation & utilities
Mining, Logging & Construction
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News on the street
Baltimore businesses expanding, contracting, etc.
CGC Holdings Inc. Ι Commercial Real Estate: Headquarters Relocation
CGC Holdings Inc., that parent company of Capital Produce Co., has signed a long-term lease to occupy the new 160,000-square-foot building that is part of theexpansion of the former giant food warehouse in Jessup. The development is set to break ground this month, and is being developed by Manekin LLC. The buildingwill house CGC’s headquarters and distribution facility.
Chesapeake Real Estate Ι Commercial Real Estate: Development
The Perryman Logistics center that has been labeled the largest Class A distribution site on the market in Maryland is nearing completion. This 571,000-square-footwarehouse is scheduled for delivery in mid-December with an asking price of $4.95 per square foot triple net. The building will include 120 loading docks, and aparking lot that can accommodate up to 244 trailers or 518 cars.
American Real Estate Partners Ι Commercial Real Estate: Disposition
After a dramatic drop in vacancy, American Real Estate Partners sold One South Street to True North Management Group for $64.3 million. The real estateinvestment management firm, located in White Plains, N.Y., purchased the building after vacancy rates plummeted from 39.5 percen t to today’s 11.5 percent with aprice of approximately $134 per square foot.
Wexford Science and Technology Ι Commercial Real Estate: Development
Wexford Science &Technology is seeking $17.5 million in tax-increment financing bonds in order to build an eight-story 250,000-square-foot building at theUniversity of Maryland, Baltimore, BioPark. The Cambridge Innovation Center, a business incubator that provides co-working space to various tenants, is set toserve as the 120,000-square-foot anchor tenant for the new building.
KEYW I Cyber Security: Expansion
The Hanover cyber security firm’s new building developed by COPT on Milestone Parkway delivered with KEYW taking the additional 88,500 square feet ofexpansion space this fall. The new building will house KEYW’s Advanced Cyber Research and Training Center, where the firm wil l develop tools and analytics tohelp protect and defend the United States.
Klein Enterprises Ι Commercial Real Estate: Development
After the acquisition of 7 Hooks Lane earlier this year, Klein Enterprises plans to construct a two-story, 40,000-square-foot office atop an existing parking garage atthe neighboring Commerce center in Pikesville. This deal is to be leveraged on the basis that it can provide Baltimore County a right of way needed to add a secondlane on the bustling Reisterstown Road stretch.
Industry employment stratification
Baltimore
Source: JLL Research
©2015 Jones Lang LaSalle IP, Inc. All rights reservedFor more information, contact: Patrick Latimer | [email protected] and Michael LaPaglia | michae [email protected]
Employment statistics
Baltimore
Sept 2013 Sept 2014 Sept 2015
Total Non-farm
Employment
1,335,1001.1%
1,352,7001.3%
1,380,5002.1%
Unemployment Rate 6.7% 5.7% 5.3%
Baltimore Supersectors Sept 2013 Sept 2014 Sept 2015
Mining, Logging & Construction 72,100 3.1% 74,700 3.6% 77,300 3.5%
Manufacturing 56,200 -3.6% 54,900 -2.3% 56,100 2.2%
Trade, Transportation,
& Utilities234,700 0.9% 235,600 0.4% 238,100 1.1%
Information 16,800 -1.8% 15,900 -5.4% 15,800 -0.6%
Financial Activities 76,700 2.0% 77,500 1.0% 81,200 4.8%
Professional & BusinessServices
219,100 3.4% 224,200 2.3% 227,500 1.5%
Educational & Health Services 249,800 1.8% 254,300 1.8% 261,300 2.8%
Leisure & Hospitality 128,500 2.6% 134,600 4.7% 139,000 3.3%
Other Services 53,600 -1.7% 53,600 0.0% 52,600 -1.9%
Government 227,600 -1.1% 227,400 -0.1% 231,600 1.8%
19%
17%
17%
16%
10%
6%
6%
4%4% 1%
Educational & Health Services Trade, Transportat ion & Util it ies
Government Professional & Business Services
Leisure & Hospitality Financial Activities
Mining, Logging & Const ruction Manufactur ing
Other Services Information
