February was the latest month with signs of economic trouble that could cause problems the commercial real estate market, according to a new report.
Employer payrolls fell by 63,000 in February following a net loss of 22,000 in January. Subtracting the 38,000 government jobs created last month yields a net loss of 101,000 private sector jobs, says Robert Bach, Senior Vice President, Chief Economist for Grubb & Ellis.
The economy probably is in recession, though the National Bureau of Economic Research may not make it official for several months until the trend lines are unequivocal, according to Bach.
Bach says that accelerating job losses over the next few months are expected to push absorption of office and retail space into the red. The industrial and apartment sectors will feel the pain to a lesser extent.
