A recovery in the U.S. commercial real estate market will be buoyed as the job market improves, the Financial Times reported.

But as buildings fill – the National Association of Realtors (NAR) estimates vacancies will decline up to one percentage point over the next year – it is the creation of jobs that will have the biggest effect on the market.

“Job growth creates demand for commercial space, and the economy should be adding between 1.5 million and 2 million jobs annually both this year and in 2012, with the unemployment rate falling to 8 percent by the end of next year,” said Lawrence Yun, chief economist with the NAR. “Given the minimal new supply in recent years, the rising demand means vacancy rates will be trending down.”

Yet, developers must be cautious to not overbuild as growing technology and energy industries ramp up their hiring efforts.

“Everybody’s getting excited for the rent growth and planning new office buildings, which, if that happens too soon, could curtail the rent growth,” said Chris Macke, senior real estate strategist with CoStar Group Inc.

“They say they are holding back on hiring plans because they don’t know how sustainable the recovery is, but the recovery depends on hiring,” he said.