Here's a quick update, because 2018 is going to start off with a lot of pressure. The latest jobs numbers were less than expectations, but all other signs of labor force participation and wage growth show that we are at full employment, so the jobs report wasn’t overly disturbing news. The Conference Board Employment Index also indicates we have plenty of steam left to keep things moving into 2018. Unemployment rates are forecasted to reach lower than they’ve been since the 1960s. The Leading Economic Index also increased, showing strong signs for the first half of 2018.
Consumer Confidence in December 2017
Consumer Confidence did decrease in December, but only after it’s 17-year peak in November, so a little bouncing around will be expected as people look to see what types of job prospects there are in 2018 as we enter Full Employment. It’s time to see how productive of an economy we can produce now that everyone is working and we test employee resolve to get back to work and earn wages. Because of such a balance of full employment and modest wage growth, there are rumors that the Fed will not increase rates as drastically as anticipated, and maybe will only make 2 adjustments this year.
What About Tampa Bay?
Looking at the local Tampa Bay commercial real estate market, we are just about at full occupancy too. There is very little extra supply out there for users searching for space, and those options that are left are hard to fill for a multitude of reasons. Land prices also continue to increase due to the level of demand, especially in the industrial sector, with some prices doubling in densely populated areas with little availability. Luckily, we have ample land to develop in our eastern sub-markets along the I-4 Corridor, and as businesses and employees get used to the change in travel patterns then companies and jobs will present themselves in places such as Plant City and Lakeland.
Calling all developers! Get out your shovels and wallets. It’s time (or at least that’s what we said last year too)! What does your intuition tell you about what you’re seeing?
Call Fortress Commercial Real Estate, so we can talk expert advice on where your real estate strategy should be focused in West Central Florida. Fortress CRE adds value to business owners looking to grow through their real estate, office and building needs.
Contact us online, call us at 813.444.3330 or email us at kostas@FortressCRE.com for more sound advice.