Article originally posted on MPAMAG on March 5, 2018.
The positive impact of commercial real estate on the US economy has been revealed in a new report.
The NAIOP Research Foundation, says that new development and operation of existing office, industrial, warehouse and retail buildings, contributes $935.1 billion to the economy, and supports 7.6 million jobs.
In a report titled Economic Impacts of Commercial Real Estate, the foundation says that the CRE sector commenced construction of 524 million square feet of new space in 2017, enough to house more than 1.3 million workers.
“The importance of commercial development to the U.S. economy is well established, and the industry’s growth is critical to creating new jobs, improving infrastructure, and creating places to work, shop and play,” said Thomas Bisacquino, NAIOP president and CEO. “Commercial real estate is a robust contributor to national and state economies, and NAIOP is dedicated to working with the administration, Congress and state legislators to develop bipartisan infrastructure investment incentives that empower our industry to expand.”
The report says that economic growth was helped by the strong construction sector. Total hard construction expenditures for the four building types included in the report totaled $98.6 billion – a $15.6 billion (18.9%) increase from 2016.