M-NCPPC Prince George’s County Planning Department
prince george’s CONTENTS Employment and Wages................. 2
Pulse
Changes in Employment
Total Employment Fourth Quarter Employment Total Wages Average Wage Per Worker Business Establishments Employment
• Transportation and Warehousing, Retail Trade, and Healthcare and Social Assistance saw the largest increases in employment between the fourth quarters of 2013 and 2014. More than 62 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 Days on the Market Multifamily Rents Multifamily Units Under Construction Commercial Market Commercial Market Composition Vacancies Net Absorption (Space Leased) Rental Rates
OCTOBER 2015 • Vol. 1, Issue 3
• Two other sectors also recorded significant gains in employment during the period—Arts, Entertainment, and Recreation and Accommodation and Food Services. Together, the two sectors added 1,069 jobs, representing 19 percent of the total increase in the County.
• The Finance and Insurance sectors recorded the highest loss of employment in the County between the fourth Leading Employ quarter of 2013 and the fourth quarter of 2014. The 689 4th Quarter 2 job losses accounted for 50 percent of the County’s total. 1,269 Gain Leading Employment 1,253 and Loss Sectors
• Information and Wholesale recorded significant 4thalso Quarter 2013 to 4th Quarter 1,034 2014 losses in employment during the period—294 and 189 jobs respectively—representing 21 percent and 14 percent 1,269 Leading Employment Gain and Loss Sectors 1,253 543 of the total losses in the County. 4th Quarter 2013 to 4th 1,034 Quarter 2014
County Revenues............................ 7 1,269 1,253 Sales and Use Taxes 1,034 Changes in Revenues
543
543
526
Leading Employment Gain and Loss Sectors 4th Quarter 2013 to 4th Quarter 2014 1,269
-294
1,253 1,034
526
-294 Transportation and Warehousing Retail Trade -689 543 526 Healthcare and Social Assistance Arts, Entertainment, and Recreation Accommodation and Food Services Transportation and Warehousing Finance and Insurance Retail Trade Information Healthcare and Social Assistance -44 Arts, Entertainment, and Recreation Wholesale Trade -113 -189 -294
-189
Accom Transportation and Warehousing Finan Retail Trade -113 -689 -44 -189 Inform Healthcare and Social Assistance Arts, Entertainment, and Recreation Whole Accommodation and Food Services Professiona Finance and Insurance Agriculture Information Wholesale Trade Professional and Technical Services Agriculture, Forestry, Fishing and Hunting
-689 Transportation and Warehousing Retail Trade Healthcare and Social Assistance
Accommodation and Food Services Finance and Insurance Information
Professional and Technical Services Agriculture, Forestry, Fishing and Hunting
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Employment and Wages 4th Quarter Average Employment
TOTAL EMPLOYMENT Quarterly average employment increased by nearly 5,300 between fourth quarters of 2013 and 2014. Nearly 85 percent of the employment gains were in private sector. There were modest increases in average wages as well.
5,300 Jobs
200,000
120,000 100,000
89,616
40,000
88,781
84,503
80,000
During the fourth quarters of 2013 and 2014, nearly 61 percent of workers were employed in private sector service industries while the remaining were employed in public sector and private sector goods production. Also during the period, the public sector added 835 jobs. In addition, there were 4,439 job gains in the private sector led by 3,909 serviceand 530 goods-producing jobs.
31,892
32,022
31,362
4th Quarter 2014
3rd Quarter 2014
4th Quarter 2013
Government Sector
Private Sector Goods
20,000 0 Private Sector Service
3rd Quarter Total Wages $2,197.6 $2,007.5 $2,063.1
Private Sector—Service
$545.3 $508.7 $501.0
Private Sector—Goods
$1,478.0 $1,558.3 $1,365.8
Government Sector $0.0
$500.0
$1,000.0
$1,500.0
$2,000.0
$2,500.0
(in millions)
AVERAGE WAGE PER WORKER Overall, the average weekly wage per worker in the County increased from the fourth quarter of 2013 to the fourth quarter of 2014. The largest increase of $86 occurred for workers in the private sector goods industries and the government sector, representing 7.0 percent and 7.3 percent, respectively. There was a modest $37 (4.3 percent) increase in the average weekly wage of private sector service workers during the period.
183,296
140,000
60,000
Between the fourth quarters of 2013 and 2014, total wages increased overall in the three employment areas. The largest increase in total wages ($134.5 million) occurred in the private service sector, representing 6.5 percent, followed by $112.2 million in public sector, representing 8.2 percent. Total wages in private sector goods industries increased by $44.3 million or 8.8 percent.
186,701
160,000
FOURTH QUARTER EMPLOYMENT
TOTAL WAGES
187,205
180,000
4th Quarter 2014
3rd Quarter 2014
4th Quarter 2013
Average Weekly Wage per Worker $1,600 $1,400 $1,200 $1,000
$1,418
$1,269 $1,315
$1,183 $1,229
$1,222 $903
$800
$827
$866
3rd Quarter 2014
4th Quarter 2013
$600 $400 $200 $0 4th Quarter 2014
1,162 2
Government Sector
Private Sector Goods
Private Sector Service
BUSINESS ESTABLISHMENTS
EMPLOYMENT
Between the fourth quarters of 2013 and 2014, the highest gains in business establishments (51) occurred in the healthcare and social assistance sector. Four other sectors recorded modest gains in establishments: Entertainment and Recreation (11), Transportation and Warehousing (8), Utilities (6), and Management of Companies (5). The most losses of establishments ocurred in Retail Trade (-22), Construction (-14), Finance and Insurance (-11), Accommodation and Food Services (-11), and Educational Services (-9).
Between the fourth quarters of 2013 and 2014, the highest increases in employment occurred in Transportation and Warehousing (1,269); Retail Trade (1,253); Healthcare and Social Assistance (1,034); Art, Entertainment and Recreation (543); and Accommodation and Food Services (526). The highest losses of employment were in Finance and Insurance (-689); Information (-294); Wholesale Trade (-189); Professional and Technical Services (-113); and Agriculture, Forestry, Fishing, and Hunting (-44).
Top Ten Changes in Establishments 4th Quarters 2013 and 2014 51
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Top Ten Changes in Employment 4th Quarter 2013 to 4th Quarter 2014 1,269
1,253
1,034
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-294
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Real Estate Number of Units Sold by Type 2nd Quarter Comparison
HOUSING MARKET
Median Home Sales Price
Home Sale Price
up
4.7%
The median sales price for all homes sold during the second quarter of 2015 in Prince George’s County was $246,000, reflecting a 4.7 percent increase over the median sales price of $235,000 during the second quarter of 2014. The largest percentage increase in price was for condominium units at 22.6 percent.
3000 Number of Units Sold
MEDIAN
3500
2500 2000 1500 1000 500 0 Single Family
Housing Market Transactions
Total
2nd Quarter 2015
2nd Quarter 2014
Percent of Units Sold by Type 80.0% 70.0% Percent of Units Sold
The total number of all units sold dropped from 3,229 units in the second quarter of 2014 to 2,241 units in the second quarter of 2015. The decline was mostly due to a reduced number of foreclosure sales. Foreclosure sales made up 21.4 percent of all single-family detached unit sales in the second quarter of 2014, but only 2.2 percent in the second quarter of 2015. Similarly, foreclosure sales for single-family attached units declined from 22.0 percent of all sales to 7.5 percent, while foreclosure sales of condominiums dropped from 34.5 percent to 2.6 percent.
Single Family Condominium Attached
60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Single Family
Single Family Attached
2nd Quarter 2014
Foreclosure Events Recently, there has been a modest decline in foreclosure events. Records of the most recent three quarters show a clear reduction in the number of foreclosure events—from 2,852 in the fourth quarter of 2014 to 2,293 in the second quarter of 2015. The number of foreclosure events during the second quarter of 2015 was slightly higher than the second quarter of 2014. However, the County’s share of the total events in the State slightly declined by 1.1 percentage points during the period, from 20.1 percent to 19.0 percent. 4
Condominium
2nd Quarter 2015
Quarterly Foreclosure Events in Prince George's County 30% 3,000
26.6% 25%
2,500
23.1%
20%
20.1%
2,000 1,500
20.4% 20.1%
3,350
15%
2,278
1,000
19.0%
2,684
2,852
2,415
2,293
10% 5%
500
0%
1st Quarter 2014
2nd Quarter 2014
3rd Quarter 2014
Total Foreclosure Events
4th Quarter 2014
1st Quarter 2015
Share of State Total
2nd Quarter 2015
Increase in Median Sale Prices
The median sale prices for new and regular resale of single-family units increased 7 percent and 4.2 percent, respectively, while Real Estate Owned (REO) prices increased 4.3 percent. The largest increases in median sale prices were for condominiums, with new and regular resale sales gaining above 20 percent. For single-family attached units, the largest increase in median sale prices of 18.4 percent occurred for REO sales.
Single Family New
20.7% 6.4%
Single Family Attached
Condominium
Regular Resale
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.
Days on the Market
10.8%
4.3%
4.2%
7.0%
9.0%
18.4%
23.8%
Median Sales Price Percent Change by Transaction and Unit Type 2nd Quarter 2014 to 2nd Quarter 2015
REO
Asking Rent Per Unit 1315 1310 1305
The average number of days on the market for all types of units decreased in the last two months of the second quarter 2015 compared to the second quarter of 2014.
Multifamily Rents
The average multifamily asking rent per unit increased by $14 or 1.3 percent from the second quarter of 2014 to the second quarter of 2015. The County still offers some of the more affordable rents in the region with average rents $378 less than the region for a studio, $310 less for a one-bedroom, $298 less for a two-bedroom, and $191 less for a threebedroom.
Multifamily Units Under Construction The number of multifamily units under construction in the County increased significantly from 2,507 units in the second quarter of 2014 to 3,316 units in the second quarter of 2015.
1300 1295 1290 1285 2nd Quarter 2014
1st Quarter 2015
2nd Quarter 2015
Multifamily Units Under Construction 3500 3000 2500 2000 1500 1000 500 0 2nd Quarter 2014
1st Quarter 2015
2nd Quarter 2015
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COMMERCIAL MARKET
Percent of Region's Commercial Real Estate In Prince George's County
Commercial Market Composition
35% 30% Percent of RBA
The County is a regional leader in the volume of industrial space of all classes with more than twice as much industrial space (50,380,520 square feet) as its closest competitor for commercial real estate space in the region, Fairfax County, which has 21,796,842 square feet.
Vacancies
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15% 10%
0%
Change In Vacancy Rates 2nd Quarter 2014 Versus 2nd Quarter 2015 11% 9% 7% 5% 3% 1% -1% -3% Office A
Office B
Office C
Retail
Industrial Industrial Industrial A B C
Flex A
Flex B
County
Flex C
Region
Total Net Absorption 2nd Quarter 2014 Versus 2nd Quarter 2015
Net Absorption (Space Leased)
350000 250000 150000 Square Feet
Net absorption is equal to the amount occupied at the end of a period minus the amount occupied at the beginning of a period and takes into consideration space vacated during the period. For the second quarter of 2015, leaders in total net absorption include Class A and B Industrial space. Only Retail and Class C Office experienced negative net absorption in the second quarter of 2015. Negative net absorption indicates that a larger volume of space was vacated than leased for the period.
20%
5%
Percent Change In Vacancy Rate
There was a very slight improvement in the Class A Office market in the County, but also a slight deterioration for Class B. (0.4 percent). The vacancy rate for Class A Office reduced by 0.4 percent, while Class B increased by 0.6 percent in the County. Meanwhile, the region experienced increases of 0.1 percent and 0.6 percent for both Class A and B Office, respectively. For the County, Class A Flex space saw the largest increase in vacancy of 11.8 percent. Among the other categories of commercial space, Class A Industrial vacancy rate increased by 1.9 percent in the County but decreased in the region by 2.2 percent. The County experienced its largest decreases in vacancy for Class B Industrial and Flex with declines of 2.7 percent and 2.4 percent, repectively. A negative percentage indicates a decline in the vacancy rate. (Office classification descriptions can be found under Endnotes.)
25%
50000 -50000 -150000 -250000 2014 2015
Rental Rates
County Revenues
$45.00 Average Rent Per Square Foot
For the second quarter of 2015, the average rent per square foot for all types of commercial space was lower in the County than the region due to the high vacancies, especially in all classes of office space. The rate for office space was 40 percent lower, retail was 20 percent, industrial 13 percent, and flex 23 percent lower.
Rental Rate Comparision Prince George's County Versus Washington Region 2nd Quarter 2015 $40.00 $35.00 $30.00 $25.00 $20.00
County
$15.00
Region
$10.00 $5.00
Sales and use taxes1 collected during the second quarter of 2014 were $3,525,416, 2.9 percent higher than the second quarter of 2013. The 2.9 percent increase in sales and use taxes collected in the County was slightly less than the overall 3.5 percent increase in the State of Maryland.
$0.00
Sales and Use Tax Comparison Second Quarters 2013 and 2014
Quarter Sales and Use Tax Growth in Prince George’s County Compared to the State—2013/2014
$123.1 $43.6
$41.4
$42.3
$41.7
May
■ 2nd Quarter 2013
June
Total Second Quarter
■ 2nd Quarter 2014
Source: Comptroller of Maryland, 2015
3.5%
3.5%
3.0% Percent Growth
$40.8
April
4.0%
2.5%
$39.9
From Fiscal Year 2013 to 2014, there were modest (0.5 percent) increases in revenues from property taxes and other taxes. These were, however, offset by noticeable declines in income taxes and other revenues.
Sales and Use Tax Collected (in Millions)
CHANGES IN REVENUES
$126.6
SALES AND USE TAXES
Change in General Revenues FY 2013into FY 2014 Change General Revenues
2.9%
FY 2013 TO FY 2014
2.0%
0.5%
0.5% Income Taxes
1.5%
Property Taxes
Other Revenues Other Taxes
1.0%
-0.6%
0.5% 0%
Prince George’s County
Maryland
Source: Prince George’s County FY 2014 Budget
-2.5%
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 in an excellent location 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 functionally or economically obsolete building is one 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 any 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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