The commercial real estate market had a mostly stellar year in 2017, according to the “Economic Impacts of Commercial Real Estate” report published by the Commercial Real Estate Development Association, also known as NAIOP. Commercial markets generated significant economic growth at both the state and national levels, supporting 7.6 million jobs and contributing $935.1 billion to the U.S. gross domestic product in 2017, according to the report, which examines the office, industrial, warehouse, and retail sectors.
About 524 million square feet of office, retail, warehouse, and industrial construction occurred in 2017. The added capacity could house more than 1.3 million new workers, according to the report.
“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,” says Thomas Bisacquino, president and CEO of NAIOP.
Warehouse construction in 2017 was up 55.7 percent year over year, the seventh consecutive year for increased expenditures. Industrial construction saw a 52.5 percent gain in 2017. Office and retail construction saw modest year-over-year decreases of 0.4 percent and 0.8 percent, respectively.
NAIOP ranked states based on development impacts (contribution to the GDP and jobs created and supported) for office, industrial, warehouse, and retail. The top 10 states for 2017 are:
- Texas
- California
- Pennsylvania
- New York
- Florida
- Georgia
- Illinois
- Louisiana
- North Carolina
- New Jersey
View the full report and rankings for all 50 states.
Source: Commercial Real Estate Development Association
