Nationally, development, construction and ongoing operations of new CRE supports 6.25 million new and existing jobs, and contributed $861 billion to U.S. GDP in 2016, according to a new report published by the NAIOP Research Foundation. The annual study “Economic Impacts of Commercial Real Estate,” revealed 410 million square feet of office, retail, warehouse and industrial space was built last year, enough capacity to house more than one million new workers.
NAIOP’s Thomas Bisacquino said, “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.”
The continuing expansion of the construction sector was a key factor in economic growth, which is expected to continue. Spending increased each year since 2011, gaining 48.7% between 2011 and October 2016.
2016 construction expenditures by product type:
- Office totaled $36.6 billion, up 28.7% from 2015
- Retail totaled $17.2 billion, a decrease of 7% from gains of 8.2% percent in 2015
- Warehouse totaled $13.6 billion, registering a sixth consecutive year of increases, gaining 12.7% from 2015
- Warehouse/Flex: No. 1 Texas, No. 2 California
- Retail: No. 1 Texas, No. 2 California
- Office: No.1 New York, No. 2 Texas, No. 3 California
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