The geography of industry in the United States is a valuable area of study for its insights into the health of the American economy, the growth of personal and professional incomes, as well as creating milestones and markers for the years to come.
Understanding and mapping the different geographical areas of industry in the United States can help scientists, economists, and everyday individuals understand more about the economy they live in, the chances for improvement, and potential areas for investment.
Seven areas of industrial interest in the United States
There are seven areas of industrial interest that were studied by Integra Reality Resources to create a map of industry in the United States. These seven areas included the industrial areas of offices, multifamily properties, retail spaces, the industrial sector, lodging, self-storage and senior housing.
All seven of these areas were researched and documented, paying close attention to areas of growth and estimations for the future of these industries.
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The geography of industry in the United States is important for understanding not only how economic recession and negative financial situations have put industry in jeopardy, but how the subsequent recovery (or attempted recovery) has changed industry and the human geography surrounding this sector.
Through the studies done on the geography of industry in the United States in recent years trends in profits and recovery percentage are only the tip of the iceberg when it comes to things that can be learned; the impact industry has on human geography, travel, tourism, and the real estate sector can also be researched and analyzed.
Impact of the Economic Recession on the Office Space Industry
In the first section of the Integra Reality Resources report the impact the economic recession has had on the office space industry was examined.
Studies found that most office space properties are still feeling the effects of the recession and have not reached the level of expansion that past years have seen.
The rate at which offices in certain cities (or country-wide) are expanding or moving to bigger spaces in order to accommodate the growth of their business is a healthy economic sign; if office properties are being leased, rented or bought frequently and office space vacancies are down, the job market is healthy.
There are businesses who can pay for those spaces and have room in which their business can grow which spells success at least in the short term.
Geography of Apartment Rates
Tracking the rates of multifamily properties that are in use is another way to understand what is happening with the geography of industry in the United States.
Apartment rates continue to vary from city to city and state to state; Integra reported that sales prices per unit increased in 2014 in Los Angeles, New York City, and Washington, D.C.
Even when housing prices are prohibitory people need a place to live; even if rent is high people will put much of their income towards having a home for themselves and their families.
Human geography can be directly tracked through the data found by studying the real estate market- we can find where people are moving to, away from, how much they are paying for different kinds of properties, and more. Knowing where people are moving to can be an indicator of the status of the job market, real estate industry, and health of the economy.
Retail Property and the Service Sector in the United States
Retail properties are another way in which the geography of the United States can be studied.
While malls and shopping centers always seem packed with people, a closer look at the state of retail properties shows many vacancies.
In some cities like San Francisco, the retail industry is very strong, showing overall growth in retail space and occupancy rates. While the rest of the country hasn’t caught up to San Francisco’s retail growth, it is estimated to continue increasing over the next three years.
Lodging is an indicator of where people are traveling, where they are staying, and how much they are willing to pay for temporary accommodation. Smaller hotels, motels and hostels in the United States have seen a sluggish trickle of travelers walking through their doors and even major tourist destinations like Chicago, Los Angeles and Washington, D.C. are struggling to raise occupancy rates.
Industrial Sector Recovery
The industrial sector has recovered quicker than other areas of industry in the United States.
This area probably saw the least amount of difficulty during the recession as good still were in demand and needed to be created and transported around the country and the world. Analyzing the industrial sector of the United States can give us a picture of not only the extensive transportation network we use to get our products and services every day, but how the demand for these services changes year by year.
Transaction volumes in major industrial hubs like Dallas, Houston, Los Angeles, Northern New Jersey, and Orange County are seeing more business in 2013-2014 than in previous years.
These sectors and many more make up the vital industry of the United States. Through analyzing and studying these areas we can create a map of the geography of the United States as it relates to the movement of people, goods, services, and products.
References
Integra Reality Resources. 2014 CRE Forecasts. http://www.irr.com/Publication/PressRelease.asp?Ref=801&~
US Department of State. Country Studies: The United States. The Manufacturing Core. http://countrystudies.us/united-states/geography-11.htm
Apartment Guide. What’s the Nation’s Median Rent — and How Much Space Will That Get You? May 7, 2014.
