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 | Jan 16, 2019
AIA 2019 Consensus Forecast: Nonresidential construction spending to rise 4.4%
The education, public safety, and office sectors will lead the growth areas this year, but AIA's Kermit Baker offers a cautious outlook for 2020.
Market Data | Dec 19, 2018
Brokers look forward to a commercial real estate market that mirrors 2018’s solid results
Respondents to a recent Transwestern poll expect flat to modest growth for rents and investment in offices, MOBs, and industrial buildings.
Market Data | Dec 19, 2018
When it comes to economic clout, New York will far outpace other U.S. metros for decades to come
But San Jose, Calif., is expected to have the best annual growth rate through 2035, according to Oxford Economics’ latest Global Cities report.
Market Data | Dec 19, 2018
Run of positive billings continues at architecture firms
November marked the fourteenth consecutive month of increasing demand for architectural firm services.
Market Data | Dec 5, 2018
ABC predicts construction sector will remain strong in 2019
Job growth, high backlog and healthy infrastructure investment all spell good news for the industry.
Market Data | Dec 4, 2018
Nonresidential spending rises modestly in October
Thirteen out of 16 subsectors are associated with year-over-year increases.
Market Data | Nov 20, 2018
Construction employment rises from October 2017 to October 2018 in 44 states and D.C.
Texas has biggest annual job increase while New Jersey continues losses; Iowa, Florida and California have largest one-month gains as Mississippi and Louisiana trail.
Market Data | Nov 15, 2018
Architecture firm billings continue to slow, but remain positive in October
Southern region reports decline in billings for the first time since June 2012.
Market Data | Nov 14, 2018
A new Joint Center report finds aging Americans less prepared to afford housing
The study foresees a significant segment of seniors struggling to buy or rent on their own or with other people.
Market Data | Nov 12, 2018
Leading hotel markets in the U.S. construction pipeline
Projects already under construction and those scheduled to start construction in the next 12 months, combined, have a total of 3,782 projects/213,798 rooms and are at cyclical highs.
