13 Jun The big impact of commercial real estate
Commercial real estate has more of an impact on the U.S. economy than you may think. A new study shows that commercial real estate supported 7.6 million American jobs and contributed $935.1 billion to U.S. gross domestic product (GDP) in 2017.
Those figures include both new commercial real estate development as well as the ongoing operations of existing office, industrial, warehouse and retail buildings. The study, “The Economic Impacts of Commercial Real Estate,” study published by the NAIOP Research Foundation, also found that commercial real estate generated $286.4 billion in salaries and wages.
The impact of new construction remains strong. Total U.S. construction expenditures totaled $98.6 billion, a nearly 19 percent increase from 2016. Warehouse construction, in its seventh year of increased construction expenditures, had the largest increase in spending of all commercial sectors, an increase of 55.7 percent from 2016. Industrial construction spending rose 52.5 percent after falling in 2015 and 2106. Office construction expenditures declined a slight 0.4 percent to $36.5 billion in 2017 while retail construction expenditures were down 0.8 percent to $17.1 billion.
For more information on the report, along with a ranking of the top states for commercial real estate investment, go to this link. As you know, we handle a variety of transactions such as real estate investments for financial institutions, banks, insurance companies, investors, borrowers and creditors. You can request a consultation here.