SLOW GROWTH

Not only has job growth cooled in recent months, it has been slow throughout this expansion cycle. The expansion is 57 months old, and payroll employment is up 3.5 percent. In the same time span after the end of the 1990-91 and 1981-82 recessions, employment had grown by 8.9 and 15.3 percent, respectively. Slower job growth, both in recent months and compared with historic cycles, has not adversely impacted the office market. Developers are adding new projects at a prudent pace, and the market continues to tighten.

LAND OF THE COSTS

The price of land varies widely by property type. Real Capital Analytics over the last 18 months tracked more than $20 billion worth of land acquisitions. The cost of land for mixed-use properties leads the pack, averaging $1.1 million per acre. Meanwhile, lifestyle centers are being built on the cheapest land, averaging $181,000 per acre. The type of buyers varies, but in-state private buyers lead the pack.

LAND COST BY PROPERTY TYPE
$/acre (in thousands) avg $ per buildable sf avg % of project cost
Big box retailers 353 41 33
Lifestyle centers 181 24 10
Power centers 329 24 19
Other strips 767 67 27
Total strips 632 57 26
Total mixed-use 1136 38 10