Preliminary job numbers are in from the Bureau of Labor Statistics for September, 2014 and after a pullback in July and August, the Washington, DC Metropolitan Region (DC Metro) posted positive gains last month. 3,300 total new positions were added to payrolls in September over August levels – an encouraging sign for the market. Even more encouraging is that the gains included new jobs for the region in all the sectors that drive demand for office space in the metro area – Financial, Professional and Business Services (PBS), Information and the Federal Government (630, 230, 280, and 720 new jobs, respectively). That also brings the September year-over-year totals for the DC region to 15,000 – still well off the 30,000 that is typical for the region, but definitely moving in the right direction compared to a dismal beginning to the year.
A market by market analysis shows the District of Columbia leading the way with over 8,000 jobs in September over August levels – the most robust growth in a year with gains mainly coming from the service industry sectors and local government. Northern Virginia was down due to continued contraction in the Professional and Business Services – over 3,000 job losses in this sector alone. The government contractors that make up a significant portion of the Northern Virginia tenant base still appear to be grappling with the fallout of federal budget austerity. The opposite was true in Suburban Maryland, which saw over 3,300 new jobs in the PBS sector.
This positive growth is great for a region that has seen its struggles of late, but unfortunately pales in comparison to other major metros around the nation. Job growth in other markets is shifting into high gear as can be seen in the corresponding chart – year- over-year, the New York, Houston and Dallas Metros have all added more than 100 thousand jobs. Hopefully, DC won't continue to be left in the dust.
[see charts below]
By: Nathan Edwards
Director of Research, Cassidy Turley - Washington, D.C.
Email Nathan: Nathan.Edwards@cassidyturley.com
Follow Cassidy Turley on Twitter: @CassidyTurleyRE
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