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M-NCPPC Prince George’s County Planning Department

prince george’s CONTENTS Employment and Wages................. 2

Pulse

Changes in Employment

Employment Private Sector Employment Total Wages Average Wage Per Worker Business Establishments

• For all private sectors, from the fourth quarter of 2014 to the fourth quarter of 2015, the County gained 1,955 private sector jobs. Health Care and Social Assistance, Administrative and Waste Services, and Accomodation and Food Services saw the largest increases in employment between the fourth quarters of 2014 and 2015. More than 54 percent of the total increase in employment in the County occurred in these three sectors.

Real Estate....................................... 4 Housing Market Median Home Sales Price Housing Market Transactions Foreclosure Events Increase in Median Sale Prices Rents for Multifamily Units

• Two other sectors also recorded significant gains in employment during the period—Professional and Technical Services and Construction. Together, the two sectors added 900 jobs, representing 21 percent of the total increase in the County. • The Transportation and Warehousing sector recorded the highest loss of employment in the County between the fourth quarter of 2014 and the fourth quarter of 2015. The 660 job losses accounted for 29 percent of the County’s total.

Commercial Market Volume of Industrial Space Vacancies Net Absorption (Space Leased) Rental Rates

• Information and Arts, Entertainment, and Recreation sectors also recorded significant losses in employment during the period—510 and 430 jobs respectively—representing 22 percent and 19 percent of the total losses in the County.

County Revenues............................ 7 Sales and Use Taxes Changes in Revenues

Top Ten Changes in Employment 4th Quarter 2014 to 4th Quarter 2015

Prince George’s County Population Estimates

848

507

393

ag an M

ise

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Source: United States Department of Labor Bureau of Labor Statistics.

-249

-430

En te r

-510

g

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vi ce er lS ica

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Se

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-660

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Source: The Nielsen Company, 2016.

820 643

2015 Estimated Population by Gender Male 434,002 Female 468,301 Total 902,303 2014 Estimated Population by Gender Male 428,505 Female 463,333 Total 891,838

Fourth Quarter 2015 • Vol. 1, Issue 4


Employment and Wages EMPLOYMENT

4th Quarter Average Employment

There was a very slight increase (2,038 or 0.6 percent) in the quarterly average employment between the fourth quarter of 2014 and the fourth quarter of 2015. Eighty-four percent (1,708) of the increase in employment occurred in the private sector, and the remaining 330 was in the public sector.

188,297

187,274

187,192

89,951

89,621

85,544

32,927

32,611

31,926

PRIVATE SECTOR EMPLOYMENT Most of the increase in private sector employment (1,023 or 60 percent) occurred in the service sector, with 685 more jobs in the private goods producing sector.

4th Q 2015

AVERAGE WAGE PER WORKER Overall, the average weekly wage per worker in the County increased by 2.6 percent from the fourth quarter of 2014 to the fourth quarter of 2015. There were increases in all three sectors. The highest increase (4.1 percent) occurred for workers in the private service sector, followed by 3.8 percent for those in the private goods sector, and 0.2 percent in the public sector.

NOTE: Totals may vary due to rounding of numbers.

4th Q 2014

Private Sector Goods

Private Sector Service

Source: United States Department of Labor, Bureau of Labor Statistics.

4th Quarter Total Wages ( in millions)

TOTAL WAGES Overall, total wages in the County during the fourth quarter of 2015 was $4,353.3 million, which was 4 percent higher than the fourth quarter of 2014. The largest increase ($100.8 million, representing 4.6 percent) occurred in the private service sector, followed by $35.6 million (2.5 percent) in the public sector. Total wages in the private goods sector increased by $32.9 million (6.0 percent).

3rd Q 2015

Government Sector

$2,295.0 $2,008.6 $2,194.4

Private Sector - Service

$578.1 $464.0 $545.2

Private Sector - Goods

$1,480.0 $1,600.5 $1,444.4

Government Sector 4th Q 2015

3rd Q 2015

4th Q 2014

Source: United States Department of Labor Bureau of Labor Statistics, Maryland DLLR.

Average Weekly Wage per Worker $1,267

$1,371

$1,314

$1,269

$1,153 $901

4th Q 2014 Government Sector

$861

3rd Q 2015 Private Sector Goods

Source: United States Department of Labor Bureau of Labor Statistics.

2

$1,364

$938

4th Q 2015 Private Sector Service


BUSINESS ESTABLISHMENTS Between the fourth quarter of 2014 and the fourth quarter of 2015, there were increases in business establishments in some sectors and decreases in others. The highest increases occurred in Construction with 67 establishments and Professional and Technical Services with 63. Three other sectors recorded modest increases—Retail Trade (53), Transportation and Warehousing (31), and Health Care and Social Assistance (7). The highest losses of establishments occurred in Other Services (-60), Wholesale Trade (-31), Finance and Insurance (-20), Real Estate and Rental and Leasing (-17), and Information (-15).

Top Ten Changes in Establishments 4th Quarter 2014 to 4th Quarter 2015 67

63 53

31

7 -60

-31

-20

-17

-15

Source: United States Department of Labor Bureau of Labor Statistics.

Percent Change in Labor Force, Employed, and Unemployed 4th Quarter 2014 to Fourth Quarter 2015 4.00%

Percent Change

2.00% 0.00% -2.00%

Labor Force

Employed

Unemployed

-4.00% -6.00% -8.00% -10.00% -12.00% County

Maryland

Source: United States Department of Labor Bureau of Labor Statistics.

From the fourth quarter of 2014 to the fourth quarter of 2015 the County’s labor force grew by 1.43 percent compared to the state’s 0.81 percent. The number of employed residents in the County also grew faster than the state at 1.97 percent versus 1.4 percent. Both the County and the state saw significant declines in the number of unemployed persons. 3


Real Estate Change in Median Sales Price by Unit Type

Median Sales Price

$300,000

HOUSING MARKET

$250,000 $200,000 $150,000 $100,000 $50,000 $0

Median Home Sales Price

Single Family

The median sales price for all homes sold during the fourth quarter of 2015 in Prince George’s County was $251,900, reflecting a 5 percent increase over the median sales price of $240,000 during the fourth quarter of 2014. The largest percentage increase in price was for singlefamily attached units at 12.8 percent.

Condominium

4th Quarter 2014

4th Quarter 2015

Number of Units Sold by Type 3,500

The total number of all units sold increased from 3,152 units in the fourth quarter of 2014 to 3,318 units in the fourth quarter of 2015. The increase was mostly due to a greater number of regular resales. Regular resales at 1,574 units made up 49.9 percent of all unit sales in the fourth quarter of 2014, and increased to 53.5 percent (1,775 units) in the fourth quarter of 2015. New units sold also increased from 385 in the fourth quarter of 2014 to 435 in the fourth quarter of 2015. Real Estate Owned (REO) sales saw a 1.5 percent increase in the number of units sold from 572 in the fourth quarter of 2014 to 651 for the same quarter in 2015. Foreclosure sales declined over the period from 621 to 475 units.

# of Units Sold

3,000 2,500 2,000 1,500 1,000 500 -

Single Family

Single Family Attached

Condominium

4th Quarter 2014

Total

4th Quarter 2015

Source: Metrostudy, www.metrostudy.com.

Quarterly Foreclosure Events in Prince George's County 3,000

23.1% 20.4%

2,500

20.1%

22.1%

22.2% 19.5%

19.0%

25%

20%

2,000 15% 1,500

2,684

1,000

1,852

2,415

2,293

2,408

2,742

2,741

10%

5%

500

0%

3rd Q 2014

4th Q 2014

1st Q 2015

Total Foreclosure Events

2nd Q 2015

3rd Q 2015

4th Q 2015

County Share of State Total

Source: RealtyTrac, Maryland Department of Housing and Community Development, HERO.

4

All Units

Source: Metrostudy, www.metrostudy.com.

Housing Market Transactions

Foreclosure Events The total of foreclosure events held steady from the previous quarter. The number of events in the first quarter of 2016 was 2,741, 326 higher than the 2,415 recorded in the first quarter of 2015. While Notice of Default and Notices of Sales declined 8.8 percent and 9.7 percent respectively from the first quarter of 2015 to the first quarter of 2016, REO Purchases increased by 100.6 percent from 357 to 716.

Single Family Attached

1st Q 2016


Increase in Median Sale Prices

Median Sales Price Percent Change by Transaction and Unit Type from 4th Quarter 2014 to 4th Quarter 2015

The median sale prices for new and regular resale of single-family housing units increased by 12.8 percent and 6.8 percent respectively, while those of REO properties increased by 5.2 percent. The largest increase in median sale price (19 percent) occurred for REO condominium sales. Regular resales for singlefamily attached units had the second largest increase in median sale price at 15.5 percent.

12.8% 6.8%

5.2%

0.3%

9.5%

1.3%

-29.5%

Rents for Multifamily Units

The average asking rent for multifamily units increased by $71 (5.9 percent) between the fourth quarter of 2014 and the fourth quarter of 2015. The County offers some of the more affordable rents in the region with average rents for a studio apartment $429 less than the region average. The average rent in the County was $314 less than the region average for a one bedroom apartment, $304 less for a two bedroom, and $276 less for a three bedroom apartment.

19.0%

15.5%

Single Family

Single Family Attached

Condominium

New

Regular Resale

REO

Source: Metrostudy, www.metrostudy.com.

Asking Rent Per Unit

$1,300 $1,280 $1,260

REO properties are properties that have gone through the foreclosure process and failed to sell at auction and are therefore owned by the bank or lender.

$1,240 $1,220

The number of multifamily units under construction in the County increased significantly from 2,109 units in the fourth quarter of 2014 to 3,490 units in the fourth quarter of 2015.

$1,282

3rd Quarter 2015

4th Quarter 2015

$1,200

$1,211

$1,180

Multifamily Units Under Construction

$1,279

$1,160 4th Quarter 2014 Source: CoStar.

Multifamily Units Under Construction 4,000 3,500 3,000 2,500 2,000

3,490

1,500 1,000

2,109

2,267

4th Quarter 2014

3rd Quarter 2015

500 0 4th Quarter 2015

Source: CoStar.

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COMMERCIAL MARKET

Percent of Region's Commercial Real Estate in Prince George's County, 2015

Volume of Industrial Space

35% 30% 25%

Vacancies

There was a very slight decline in the Class A Office market conditions in the County, but also a slight improvement for Class B. The vacancy rate for Class A Office increased by 0.1 percent, while that for Class B decreased by 1 percent. At the same time, the vacancy rate for Class A Office space in the region also declined by 0.1 percent, and 0.5 percent for Class B.

20% 15%

29.27%

11.96%

5% 0%

Office A

15.31%

Office B

15.16%

15.32%

Flex B

Flex C

5.42% Office C

Retail

Industrial Industrial Industrial A B C

Flex A

Source: CoStar.

Source: CoStar.

Change In Vacancy Rates 4th Quarter 2014 Versus 4th Quarter 2015 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0%

Source: CoStar.

County

Region

Total Net Absorption 4th Quarter 2014 Versus 4th Quarter 2015 350,000

Net Absorption

6

32.44%

6.79%

3.44%

The vacancy rate for Class A Flex space in the County increased significantly by 11.8 percent during the period. Even though the vacancy rate for Class A Industrial space increased by 9.5 percent in the County during the period, it also increased by 3 percent for the region. The County experienced the largest decrease in vacancies for Class C Flex (3.1 percent), Class B Flex (2.9 percent), and Class B industrial space (2.7 percent). Note that a decline in vacancies is a positive development.

300,000 250,000 200,000 Square Feet

Net absorption is the amount of space occupied at the end of a period minus the amount occupied at the beginning of that period, that is, the space vacated during the period. For the fourth quarter of 2015, Class B Industrial, Retail, Class B Office, and Class A Industrial experienced the best conditions regarding total net absorption. Class A Office, Class C Office, Class C Industrial, and Class B Flex experienced negative net absorption for the period. Negative net absorption indicates that a larger volume of space was vacated than leased for the period.

28.69%

10%

Percent Change In Vacancy Rate

Percent of RBA

The County is a regional leader in terms of the volume of industrial space of all classes. The existing Rentable Building Area (RBA) of industrial space of all classes during the fourth quarter of 2015 (49,815,202 square feet) represented 30 percent of the total for the Washington, D.C. Metropolitan Region.

150,000 100,000 50,000 0 -50,000 -100,000

Source: CoStar. Source: CoStar.

2014 2015


Rental Rates

County Revenues SALES AND USE TAXES

$45 $40 Average Rent Per Square Foot

During the fourth quarter of 2015, the average rent per square foot for all types of commercial space was lower in the County compared to the region. The rental rates for Office space was 38.8 percent lower than the region, retail was 20.9 percent lower, Industrial was 11.9 percent lower, and Flex was 13.3 percent lower than the region.

Rental Rate Comparision Prince George's County Versus Washington Region 4th Quarter 2015

$35 $30 $25 $20 $15 $10 $5 $0

Sales and use taxes collected during the second quarter of 2014 amounted to $126.6 million, representing a 2.9 percent increase over the second quarter of 2013, when they totaled $123.1 million. The increase in the County was still lower than the State of Maryland. 1

County

Source: CoStar.

June

■ 2nd Quarter 2013

Total Second Quarter

■ 2nd Quarter 2014

Source: Comptroller of Maryland, 2015.

Quarter Sales and Use Tax Growth in Prince George’s County Compared to the State—2013/2014 4.0%

0.5%

3.5%

Other Revenues Other Taxes -0.6%

3.5%

3.0% Percent Growth

Property Taxes

$41.4

May

$43.6

$123.1 April

Change in General Revenues FY 2013 TO FY 2014

Income Taxes

$42.3

$41.7

$40.8

$39.9

Sales and Use Tax Collected (in Millions)

There was an overall increase in local taxes from $1.54 billion in FY 2011 to $1.61 billion in FY 2015, reflecting a 4.2 percent increase. The two dominant sources of local taxes—property taxes and income taxes— accounted for 86.7 percent of all local taxes in FY 2015. By far, property taxes have been the leading source of revenue in the County, generating $726.9 million in FY 2011, and $969.7 million in FY 2015. Data from the County’s FY 2014 Budget show that from FY 2013 to FY 2014, while totals of property and other taxes each increased by 0.5 percent, income taxes declined by 2.5 percent, and other taxes declined by 0.6 percent. In FY 2015, property taxes represented 56.9 percent of all local taxes. Income taxes are also a major revenue source, representing 29.8 percent of the total. There was a $52.2 million (11.5 percent) increase in income taxes from FY 2011 to FY 2015.

$126.6

Sales and Use Tax Comparison 2nd Quarters 2013 and 2014

CHANGES IN REVENUES

0.5%

Region

2.5%

2.9%

2.0% 1.5% 1.0% 0.5%

-2.5% Source: Prince George’s County FY 2014 Budget.

0%

Prince George’s County

Maryland

Source: Prince George’s County FY 2014 Budget.

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Endnotes 1

Use Tax: The use tax is imposed on consumers of tangible personal property that is used or consumed. Use taxes are also used to help defray the cost of public services associated with particular types of personal property. The purpose of a use tax is to help recoup the cost of public services directly related to the use of certain types of personal property. The most common use taxes are assessed on motor vehicle and boat licenses. User fees are also charged for docking privileges in airports and harbors.

Office Classifications Class A Office: In general, a Class A building is an extremely desirable, investment-grade property with the highest quality construction and workmanship, materials and systems, significant architectural features, the highest quality finish and trim, abundant amenities, and first rate maintenance and management. It is normally occupied by prestigious tenants with above average rental rates and excellent locations with exceptional accessibility. Class B Office: A Class B building offers more utilitarian space without special attractions. It will typically have ordinary architectural design and structural features, with average interior finish, systems, floor plans, and overall condition. It will typically not have the abundant amenities and location that a Class A building will have. Class C Office: A Class C building is generally one that is functionally or economically obsolete that does not offer a viable alternative for space and does not “compete� with others of similar type for occupancy by businesses seeking a location for operations. These buildings will usually have externally visible physical or structural features as well as internal ones that render it undesirable to be leased and therefore not competitive with other properties in the market.

The Maryland-

The Maryland-National Capital Park and Planning Commission National Capital Prince George’s County PlanningPark Department, Research/Special Projects Section and Planning 14741 Governor Oden Bowie Drive Commission Upper Marlboro, MD 20772 www.pgplanning.org | 301-952-3065 | TTY: 301-952-4366

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Prince George's Pulse Quarterly Report 4th QTR 2015  

Prince George's Pulse Quarterly Report 4th QTR 2015  

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