- Office space isn't keeping up with job growth, writes Bloomberg's Rani Molla, noting office space per employee fell to 192 square feet last year vs. nearly 205 sq. ft. five years earlier. It's naturally good news for landlords as well as companies which build corporate offices, but particularly so for those located in areas with the fastest employment growth.
- Not surprisingly, this includes San Francisco and San Jose, but it also includes the Sunbelt, where many companies are moving workers to escape sky-high prices on the coasts.
- REITs with substantial Sunbelt exposure - think Equity Commonwealth (NYSE:EQC), Piedmont Office Realty Trust (NYSE:PDM), and Highwoods Properties (NYSE:HIW) - have outperformed big city counterparts over the past year. According to Highwoods CFO Mark Mulhern, his company's properties are enjoying an all-time average occupancy of 93%.