Economic Strength measures the broader economic health of an area through employment growth, wage levels, GDP contribution, banking activity, and small business lending. These indicators reflect the economic engine that drives commercial real estate demand.
Economic Strength is critical for long-term CRE investment decisions. Areas with strong employment growth and rising wages see sustained demand for both office and retail space. Banking activity and small business lending indicate local business confidence and access to capital.
Year-over-year employment growth rate in the county/metro.
Federal employment statistics, quarterly updates. Higher growth = stronger local economy.
Average weekly wages compared to metro and national benchmarks.
Federal wage data. Normalized using fixed-range scaling.
Metro-level GDP per capita as a proxy for economic productivity.
Federal regional economic data divided by population. Higher productivity = stronger economic base.
Total deposits and deposit growth at local bank branches.
Federal deposit data within county. Growing deposits indicate economic confidence and capital accumulation.
Volume and value of federally-backed small business loans in the area.
Federal loan origination data within county. Higher lending = more small business formation.
An Economic Strength score of 72 means the local economy scores 72 out of 100 on our fixed-range scale. Employment growth and wage levels are the primary drivers.