Comments on: Property Sector Employment Prospects Q1 2010 http://www.prefio.com/blog/results-of-survey-predicting-property-employment-prospects-q1-2010/ Commercial property people Wed, 24 Mar 2010 16:38:12 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Jonathan Price http://www.prefio.com/blog/results-of-survey-predicting-property-employment-prospects-q1-2010/comment-page-1/#comment-594 Jonathan Price Wed, 06 Jan 2010 18:09:58 +0000 http://www.prefio.com/blog/?p=947#comment-594 One shouldn't really be surprised at this analysis. Real Estate is a lagging indicator to the economy, not a leading one. In our experience, property statistics tend to react to changes in the economy between 12 and 24 months later. The only exception to this is the serviced office/business centre industry, which reacts more quickly owing to the short term nature of the licence agreements used by it, compared to the length of occupational leases. We think that serviced offices lag the economy by around 6 months, which means that they in turn act as a leading indicator for conventional offices by 6 months to a year. One shouldn’t really be surprised at this analysis. Real Estate is a lagging indicator to the economy, not a leading one. In our experience, property statistics tend to react to changes in the economy between 12 and 24 months later.

The only exception to this is the serviced office/business centre industry, which reacts more quickly owing to the short term nature of the licence agreements used by it, compared to the length of occupational leases.

We think that serviced offices lag the economy by around 6 months, which means that they in turn act as a leading indicator for conventional offices by 6 months to a year.

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