Chief economist outlines employment, traffic and other trends in five major U.S. cities
SANTA BARBARA, Calif., Oct. 24, 2017 –Jack Kern, chief economist at Yardi Matrix, recently presented the latest research on five key U.S. markets with transportation issues that present challenges for employers, workers, investors and asset managers.
Speaking at the IREM Global Summit in Chicago, Kern noted that San Francisco, Denver, Atlanta, Los Angeles and Miami all offer strong qualities to attract major employers. However, transportation infrastructure shortcomings drive real estate investors and asset managers seeking strong tenants to find properties that capitalize on local amenities.
Kern reported that:
- San Francisco and the Silicon Valley offer some of the most alluring tech jobs in the world but also face elevated rent levels and congestion on local freeways
- Denver and Atlanta are two of the fastest growing metros in the country, but employment and population growth has outpaced road and transit improvements, straining highways and transportation networks
- Los Angeles and Miami provide diverse economies with large ports as well as significant office employment. However, their geographies and overtaxed infrastructure systems create unique mobility and transportation challenges.
In each of these markets, emerging suburban work, residential and entertainment centers offer an attractive and liveable urban landscape. While urban cores continue to attract residents and employers, so do suburban locations with strong demographics and well developed transportation infrastructures, Kern said.
“The overall fundamentals of demand look strong in many markets across the country, but as new construction continues to concentrate near urban and urbanized suburban areas, asset managers must focus on key employment and lifestyle locations within a given market in order to optimize performance,” Kern said.
Get a quick overview of Kern’s presentation.
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