Renowned economist Hugh F. Kelly (PhD, CRE), Clinical Professor in New York University’s Schack Institute of Real Estate and the 2014 national Chairman of The Counselors of Real Estate, led a discussion at a CREW-Miami luncheon regarding issues affecting the commercial real estate market in 2015 and gave his annual economic predictions.

Some of the highlights from his presentation:

– Labor Markets.  In 2014 there were approximately 2,952,000 new jobs and Hugh predicts there will be 3.2 million new jobs in 2015. Unemployment was down 5.6% from the prior year. Notwithstanding the increase in the number of new jobs, Hugh discussed the need to prepare for a change of state from a labor surplus economy to a labor shortage one, and that the global talent search must start now. Hugh suggested that without a change in our immigration policy, the U.S. as a whole will face a shortage of workers. Employers will need to figure out how to retain employees by offering better benefit packages and incentives, which will be eventually followed by an increase in wages. Employment and job growth is essential for the real estate sector because it is the catalyst for increased sales in retail and spending in the hospitality market, as well as for the rise in office occupancy.

Miami employment proved more resilient than the U.S. in the last recession and as well as in its recovery.