The retail sector in the East was the most overpriced in the US. While the industrial sector rated highest among all property types in the East region of the US for its return vs. risk and value vs. price, the retail sector fared the worst in both categories. That’s according to a survey of regional correspondents conducted for the 4Q 2018 Situs RERC Real Estate Report, “Staying on Track.”
Here’s a closer look at some of the major metro areas in the East:
The nation’s capital experienced employment growth of 1.5% over the last 12 months. At 3.3%, its unemployment rate is below the national average of 3.9%.
With Crystal City becoming home to Amazon’s HQ2, Washington D.C., is expected to have strong employment growth. The CRE market, especially the apartment sector, will react favorably to the infusion of high-paid employees.
New York’s employment grew 1.1% over the last 12 months, adding 111,126 jobs in 2018. At 3.8%, its unemployment rate is below the national average of 3.9%.
Amazon canceled its New York HQ2 plans, but Google still expects to double its New York workforce over the next decade. Affordability is a major concern, but its talent pool should help drive the metro’s CRE market.
Boston added 47,223 jobs in 2018 as employment grew 1.7%. At 3.0%, its unemployment rate is below the national average of 3.9%.
Boston is a leader in technology and innovation because of its proximity to Harvard and MIT. In 2018, Massachusetts ranked second in the nation for venture capital funding.
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