Unemployment Woes

Cushman & Wakefield senior director Mike Gosslee compares DFW's office market to a bleeding patient: He tells us the prognosis is a slow recovery—blood flow slowing, not stopping. Where's Dr. McDreamy when CRE needs a job transfusion?
 
The Dallas-Plano-Irving metro and Fort Worth-Arlington gained 5,600 jobs and lost 2,200  in the past year through 2Q. Mike says corporate layoffs slowed since May '09 (good news), reporting a loss of 900 jobs in Dallas-Plano-Irving and a loss of 3,300 (bad news) in Fort Worth-Arlington. “The slowing of job losses is like saying ‘Thank you doctor, I'm not bleeding as much as I was,'” Mike tells us. “Slowing is a good sign that the DFW economy is going forward. It's office marketing 101: job growth and positive absorption  fill offices.”
The greater DFW MSA's May unemployment rate was 8.1%, up from 7.6% in May last year. Compare that with national figures—9.3% for May, up from 9.1% a year ago. Texas fares better than the US and a little better than DFW with the unemployment rate at 8% for May, up from 7.3% at the end of May '09. Mike says the small decreases won't spark a recovery, but it's a good sign. “Before you can start seeing job growth start again, you've got to see a slow down in the losses. The recovery won't be an abrupt V; it will be more of a curve to get back to good health.”
Pent-up tenant demand escalated in the first six months resulting in a 39.4% increase in leasing  activity, reporting 6.2M SF leased YTD Mike says. Although the net change in occupied space citywide remained negative at  202k SF for the six-month period, overall,absorption was up 72.8% compared with 2Q09. HP's major consolidation vacated about 250k SF, moving from 3000 Waterview to the former EDS HQ in the Legacy/Frisco submarket. Sublease space on the market totaled 4.25M SF YTD, a drop of 5.7% compared with 2009 totals. At least one thing in DFW's office market remains solid: Mike marked 25 years with C&W this summer.

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Related Topics: DFW MSA , Mike Gosslee , The Dallas
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