Which method is considered more effective for forecasting employment needs?

The method of applying square feet per office employee to future employment estimates is considered more effective for forecasting employment needs because it directly correlates the physical space requirements to the actual workforce size. This approach takes into account how much space is typically allocated for each employee in an office setting, allowing for a more nuanced prediction of future office space demands based on anticipated employment growth or decline.

This method is grounded in practical metrics and provides a tangible way to project commercial real estate needs based on workforce trends, making it particularly useful in dynamic markets. It allows businesses and real estate professionals to better plan and allocate resources based on expected changes in personnel, ensuring a more accurate alignment between employment forecasts and the physical infrastructure required.

In contrast, relying solely on historical market trends does not account for current or future shifts in employment or industry demands, and demographic data alone may not provide the granularity needed to understand specific office space needs. Previous net absorption numbers could give insights into past performance but do not inherently predict future employment requirements effectively. Thus, the square footage per office employee metric offers a forward-looking and practical solution to anticipating future employment needs within the commercial real estate context.