The document summarizes the state of the US economy and real estate market in October 2014. It predicts that the economy will strengthen in the second half of 2014, driven by business spending, consumer spending, and growth in the tech and energy sectors. It also notes potential headwinds such as global economic volatility and the timing of interest rate increases. Stronger employment is expected to improve real estate markets, though supply constraints could remain an issue in many markets.

1. OCTOBER 21, 2014
US ECONOMIC
AND MARKET UPDATE

2. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research
OVERVIEW
■2014: Economy taking off
– Weak first quarter, strong second
– Second half projected even stronger
– Rapid job and income growth anticipated
■ Drivers of growth
– Businesses shift from defense to offense
– Consumers accelerate spending growth-pent up demand
– Relative stability in Washington
– Tech, Energy
■ Potential Headwinds
– Global volatility
– Fed tapering-when and how will interest rates rise
– Strength of European recovery/APAC
■ Real Estate Impact
– Stronger employment-healthier markets
– Tech/energy dominated markets remain among the best
– Supply remains constrained in most markets-industrial construction picking up
– Densification trend

3. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
EMPLOYMENT GROWTH Research
COMPARED TO LONG TERM RECOVER AVERAGE
Average
Recovery: 2,081
5,000
3,000
1,000
-1,000
-3,000
-5,000
-7,000
Source: US Bureau of Labor Statistics

4. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research
U.S. RETAIL SALES
425,000
375,000
325,000
275,000
225,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Millions of 2009 Dollars
Source: U.S. Census Bureau

5. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research
U.S. RETAIL SALES-INTERNET SHARE OF
GAFO
25%
23%
21%
19%
17%
15%
13%
11%
9%
7%
5%
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Source: U.S. Census Bureau

6. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research
130
120
110
100
90
80
70
60
TRUCK TONNAGE INDEX
1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
2000=100
Source: American Trucking Association

7. CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research
U.S. RECESSION/RECOVERY PERFORMANCE
BY INDUSTRY
Employment Change Since January 2008
6.0%
1.0%
-4.0%
-9.0%
-14.0%
Total
Source: U.S. Bureau of Labor Statistics

8. 30,000
29,500
29,000
28,500
28,000
27,500
27,000
CUSHMAN &
WAKEFIELD
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Cushman &
Wakefield
Research U.S. OFFICE-USING EMPLOYMENT VS.
VACANCY
26,500
21.0%
19.0%
17.0%
15.0%
13.0%
11.0%
9.0%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Thousands of Persons
Percent
Source: U.S. Bureau of Labor Statistics, Cushman & Wakefield Research

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