WASHINGTON, DC—The Washington DC area added 73,000 new jobs year-over-year in July, according to JLL. This is approximately double the rate of long-term averages. Much of the hiring during the month was driven by the professional and business services sector, with 21,300 jobs added year-over-year.

It appears that the area, in short, has absorbed the worst blows sequestration and the overall decline in federal government payrolls could deliver and has found its sea legs again. This is a theme not just captured by JLL in its report but by other execs whose business is commercial real estate.

Granted, no one will deny the market is competitive and still largely favoring tenants. But signs of life can be found everywhere now, including the Maryland suburbs. Consider Washington REIT CEO Paul McDermott's comments during the second quarter earnings call, held at the end of July.

"Retail in the region is benefiting from significant upticks in job growth in the Washington Metro economy over the last few months and the market vacancy rates for neighborhood and community shopping centers in Northern Virginia and suburban Maryland are modestly lower in the second quarter," he said.

As the area continues to add people to its payrolls, decision-making among tenants will likely shift, JLL says in its report.

To be sure, cost containment will remain a priority for many tenants, it said, but "the tightening labor market and improved economic landscape may precipitate real estate decisions that are focused less on financials and more toward enhancing employee recruitment and retention."