After several years of contraction, Cleveland employers willexpand payrolls at an above-average pace in 2010. The turnaroundwill be driven by the region's large and expanding education andhealth-services sector, along with renewed growth in theprofessional and business services, manufacturing and tradeindustries. Overall, nonfarm payrolls in the metro area willincrease by 2.1 % during 2010, more than twice the national rate.Cleveland registered strong job creation through the first half,led by gains in the manufacturing and professional and businessservices sectors, both segments of the economy that experiencedsome of the most dramatic contraction between late 2007 and 2009.Overall, Cleveland employers added 18,000 jobs during the firsthalf of2010, offsetting slightly more than 20% of the lossesrecorded during the previous two years. This compares favorably tothe national trend, with US employment gains through the first sixmonths making up just 11 % of the cuts recorded through thedownturn.

The resumption of economic growth in the metro area led torising occupancy rates across three of the four core propertysectors during the second quarter. While a single quarter does notconstitute a trend, the improvements offer cause for optimism thatcommercial real estate fundamentals have at least bottomed, if notbegun to recover.

Given expectations for choppy economic growth through the secondhalf, as the benefits of inventory building on the localmanufacturing sector loses some momentum, fundamentals mayfluctuate, however, the general trend over the next six to ninemonths should be mostly stable or positive.

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