JLL Cincinnati Office Employment Update May 2015
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Transcript of JLL Cincinnati Office Employment Update May 2015
Office employment trends (12-month change) Cincinnati
Sources: Jones Lang LaSalle Research, Bureau of Labor Statistics
• The Cincinnati metro continued its steady expansion by recently
adding 14,400 payrolls, year-over-year, bringing total non-farm
employment to 1.04 million. Meanwhile, unemployment fell 1.2
percent to 4.8 percent from the previous year.
• The office employment sector continued its streak of strong jobs
growth, posting an annual net gain of 5,500 jobs according to the
latest data from the BLS. Professional and business services led
the pack, adding 5,900 new jobs, year-over-year. Meanwhile, the
government super sector continued its now eight month streak of
negative jobs growth, dropping 2,100 from payrolls, annually.
• Total U.S. nonfarm employment increased by 223,000 jobs in
April, a healthy uptick after a disappointing March where job gains
totaled just 85,000. The strong April results will help lower
concerns among economists and Wall Street of a hiring slowdown.
• U.S. unemployment decreased 10 basis points to 5.4 percent, its
lowest mark since May 2008. Wages also continued to trend in the
right direction in April, increasing 2.2 percent year-over-year.
Total jobs vs. Unemployment rate Cincinnati
Office employment update Metro Cincinnati . May 2015
Cincinnati is driven by a diverse range of office-using tenants, while the bulk of
activity has historically belonged to medical, data, and marketing and branding
firms. The office sector continues to experience new development, with
particular renewed interest in the suburban markets, which ended 2014 with
over 450,000 square feet of office space under construction.
The Cincinnati economy is humming, moving from its slow-gear recovery
stages and now poised for accelerated growth and expansion. A number of
high-profile capital investments announced in 2014 have marked a continually
improving real estate market and metro as a whole, while strengthening
employment figures indicate the growing strength in the Cincinnati labor
market. In fact, the Cincinnati USA Regional Chamber expects local
employment to increase by 2.0 percent through 2015, bringing with it an
increase of nearly 21,000 net new jobs.
Office real estate implications Job growth/loss by sector (12-month change) Cincinnati
-2,100
-1,200
-1,000
100
400
1,600
1,700
1,700
5,900
7,300
-4000 -2000 0 2000 4000 6000 8000
Government
Educational & Health Services
Leisure & Hospitality
Information
Other Services
Financial Activities
Mining and Logging
Manufacturing
Professional & Business Services
Trade, Transportation & Utilities
Number of Jobs
(8.0)
(6.0)
(4.0)
(2.0)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011
2012
2013
2014
2015
Financial Activities Professional and Business Services Information Government
4.8% Cincinnati unemployment
1.4% Cincinnati 12-month job growth
5.4% U.S. unemployment
2.2% U.S. 12-month job growth
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
900,000
920,000
940,000
960,000
980,000
1,000,000
1,020,000
1,040,000
1,060,000
1,080,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Peak: 1,069,054 jobs Total Employment
Unemployment
3.1%
© 2015 Jones Lang LaSalle IP, Inc. All rights reserved.
All information contained herein is from sources deemed
reliable; however, no representation or warranty is made
to the accuracy thereof.
JLL Americas Research • Cincinnati Office Employment Update 2
March 2013 March 2014 March 2015
Total Non-farm
Employment
1,006,900
1.0%
1,027,600
2.1%
1,042,000
1.4%
Unemployment Rate 7.4% 6.0% 4.8%
Cincinnati Supersectors March 2013 March 2014 March 2015
Mining, Logging and Construction 35,400 -1.9% 38,000 7.3% 39,700 4.5%
Manufacturing 103,900 -0.7% 108,500 4.4% 110,200 1.6%
Trade, Transportation, & Utilities 198,000 0.6% 199,600 0.8% 206,900 3.7%
Information 14,100 2.2% 13,400 -5.0% 13,500 0.7%
Financial Activities 64,900 2.4% 65,800 1.4% 67,400 2.4%
Professional & Business Services 159,000 1.0% 163,400 2.8% 169,300 3.6%
Educational & Health Services 154,700 2.0% 159,200 2.9% 158,000 -0.8%
Leisure & Hospitality 105,200 3.4% 108,800 3.4% 107,800 -0.9%
Other Services 39,700 4.7% 38,700 -2.5% 39,100 1.0%
Government 132,000 -1.0% 132,200 0.2% 130,100 -1.6%
News on the street Cincinnati businesses expanding, contracting, etc.
Employment statistics
Cincinnati
Industry employment stratification
Cincinnati
Assurex Health Ι Medical & Diagnostic Laboratories: Relocating
Assurex Health recently revealed that it plans to move its headquarters and laboratories to a $15 million complex that will be built next year in Mason’s Oakpark
District. The building on Innovation Way, near the planned $16.4 million Western Row Interchange for Interstate 71, will anchor a 30-acre, mixed-use development.
The city of Mason owns the now vacant land. The 60,000-square-foot Assurex complex will be designed to allow a build-out of another 30,000 square feet.
Cassady Schiller & Associates Inc. Ι Accounting Services: Relocating
One of Greater Cincinnati’s largest accounting firms is getting ready to move its offices. Cassady Schiller & Associates Inc. has outgrown the building it owns on
Lake Forest Drive in Blue Ash and is moving down the street. The company has signed a lease to move this summer to become a major tenant at the Westlake
Center at 4555 Lake Forest Drive. It’s vacating about 10,000 square feet and moving into 16,000 square feet on the fourth floor of the seven-story building.
Masters Pharmaceutical Ι Professional Services Sector: Relocating
Masters Pharmaceutical revealed plans to move its corporate headquarters from Forest Park to Mason, where the fast-growing firm intends to build a 300,000-
square-foot office, warehouse and distribution center on 47 acres. Total investment would approach $16 million for the land, building and equipment. Phoenix
Architecture of downtown Cincinnati is the architect and Design Build Solutions of Sharonville is builder of the complex near 2563 State Route 741 and Binion Way.
Procter & Gamble Ι Personal Care Products Manufacturing: Contracting
Procter & Gamble’s (NYSE: PG) three-year effort to trim its office workforce by about 10,000 employees is a year ahead of schedule, and up to 6,000 additional non-
manufacturing jobs could be eliminated over the next two years through buyouts, retirements and not filling vacant positions. P&G has about 11,000 employees in
Greater Cincinnati and another 107,000 elsewhere. In addition, roughly 10,000 manufacturing jobs have been eliminated globally over the last three years.
RoundTower Technologies Inc. Ι Information Technology Services: Expanding
One of Greater Cincinnati's fastest growing technology companies is looking for a new headquarters. RoundTower Technologies Inc., which had 2014 revenue of
about $140 million, is looking for 30,000 square feet of space to house the company's headquarters. Currently, the company leases about 13,000 square feet of
space at 4555 Lake Forest Drive. The company is targeting a move south, with Kenwood Collection and Rookwood Exchange as two potential locations.
Staffmark Ι Staffing Services: Relocating
Staffmark, the national commercial staffing firm based in downtown Cincinnati, is moving its corporate headquarters after more than 20 years on Elm Street.
Staffmark signed an eight-year lease for more than 37,000 square feet of space at Omnicare Center. The company, which has 200 employees in its downtown
office, is expected to move before the end of the year. The firm will take all of the eighth floor and a portion of the seventh floor in the building.
Cody Brooks Research Analyst Great Lakes Region tel +1 513 297 2509 [email protected] 312 Walnut St, Suite 3030 Cincinnati, OH 45202 www.jll.com/cincinnati
Andrew Batson Senior Research Analyst Great Lakes Region tel +1 216 937 4374 [email protected] 127 Public Square, Suite 2410 Cleveland, OH 44114 www.jll.com/cleveland
Trade, transportation and Utilities,
206,900, 20%
Professional and Business Services,
169,300, 16%
Educational and Health Services,
158,000, 15%
Government, 130,100, 13%
Manufacturing, 110,200, 11%
Leisure and Hospitality, 107,800, 10%
Financial Activities, 67,400, 6%
Mining, Logging and construction,
39,700, 4%
Other Services, 39,100, 4% Information,
13,500, 1%