NAIOP, the Commercial Real Estate Development Association, recently released its annual study “Economic Impacts of Commercial Real Estate” in which it details the development, construction, and ongoing operations of new commercial real estate in the U.S.
The study shows office, industrial, warehouse, and retail real estate development supported 6.25 million American jobs and contributed $861 billion to U.S. GDP in 2016. Between 2011 and October 2016, construction spending increased 48.7% and was a key factor in the economy’s growth in 2016. For the year ending in October 2016, total construction spending was up 3.4%.
Office and Warehouse spending increased by 28.7% and 12.7% respectively from 2015. Retail spending decreased 7 percent from gains of 8.2% in 2015. Industrial spending decreased significantly for the second straight year, down 29.9% from 2015.
Of the top 10 states by construction value (office, industrial, warehouse, and retail), only three (New York, Texas, and Florida) remained in the same position as 2015. New York was once again first on the list with $24.8 billion in direct spending and $46.05 billion in total output. Texas wasn’t far behind with $18.5 billion in direct spending and $44.3 billion in total output. Florida once again took the fifth position on the list.
To view the full report, click here.
Related Stories
Market Data | Aug 21, 2019
Architecture Billings Index continues its streak of soft readings
Decline in new design contracts suggests volatility in design activity to persist.
Market Data | Aug 19, 2019
Multifamily market sustains positive cycle
Year-over-year growth tops 3% for 13th month. Will the economy stifle momentum?
Market Data | Aug 16, 2019
Students say unclean restrooms impact their perception of the school
The findings are part of Bradley Corporation’s Healthy Hand Washing Survey.
Market Data | Aug 12, 2019
Mid-year economic outlook for nonresidential construction: Expansion continues, but vulnerabilities pile up
Emerging weakness in business investment has been hinting at softening outlays.
Market Data | Aug 7, 2019
National office vacancy holds steady at 9.7% in slowing but disciplined market
Average asking rental rate posts 4.2% annual growth.
Market Data | Aug 1, 2019
Nonresidential construction spending slows in June, remains elevated
Among the 16 nonresidential construction spending categories tracked by the Census Bureau, seven experienced increases in monthly spending.
Market Data | Jul 31, 2019
For the second quarter of 2019, the U.S. hotel construction pipeline continued its year-over-year growth spurt
The growth spurt continued even as business investment declined for the first time since 2016.
Market Data | Jul 23, 2019
Despite signals of impending declines, continued growth in nonresidential construction is expected through 2020
AIA’s latest Consensus Construction Forecast predicts growth.
Market Data | Jul 20, 2019
Construction costs continued to rise in second quarter
Labor availability is a big factor in that inflation, according to Rider Levett Bucknall report.
Market Data | Jul 18, 2019
Construction contractors remain confident as summer begins
Contractors were slightly less upbeat regarding profit margins and staffing levels compared to April.
