Good News for 2010!
Good News for 2010
BY: Nicholas A. Dunlap, CPM
Anil Puri, Dean of the Mihaylo College of Business and Economics at CSUF predicts that approximately 10,000 new Orange County jobs will be added in 2010. Though not as substantial as the 58,000 jobs lost this year or 38,000 lost in 2008, the idea of a halt in job losses is well-received by all. The new jobs are projected to increase as we move into to 2011 and receive over 24,000 new jobs. Puri was quick to point out that by no means would the economy be “job full” and that the unemployment rate would remain high.
In Real Estate, job growth equals rent growth, or at least the potential for rent growth. As such, the addition of 35,000 jobs to an economy that saw over 96,000 lost in two years yields a much needed boost in investor confidence. But wait, it gets better. Puri said a large part of his forecast was based on a potential up tick in the residential real estate market, citing projects now underway by the Irvine Company as evidence of change.
Could the worst be behind us? It will be interesting to see as we navigate through the end of 2009 to see how vacancy rates and concessions affect our bottom line. Through it all, the ability to respond quickly to the unique situations facing many rental sub-markets within the Orange County area has enabled us to remain stable despite the downturn. The next month and a half will be extremely important as we position ourselves to start 2010 stronger than we did 2009.