#539. Economic Impacts of Commercial Real Estate

Posted on | The Agurban

Economic Impacts of Commercial Real Estate    

NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners, and related professionals in office, industrial, retail and mixed-use real estate. The NAIOP Research Foundation will soon release their 2015 edition of “Economic Impacts of Commercial Real Estate”, by Stephen S. Fuller, PH.D., George Mason University. As members of NAIOP, Agracel received an advanced release of the study. Below is a brief summary of the report:

In 2014, the commercial real estate development industry experienced its best year since 2007. This year’s edition of the annual report determined that the economic contributions made by the development process last year were 40 percent higher than those made in 2013. The data show that 2014 was the strongest year for economic development impacts from development activity since the market began to recover in 2011. Direct expenditures for 2014 totaled $174.31 billion, up from $124 billion the year before, and resulted in the following economic contributions to the U.S. economy:

–          Total contributions to GDP reached $528.09 billion, up from $376.35 billion in 2013

–          Personal earnings (or wages and salaries paid) totaled $168.42 billion, up from $120.02 billion in 2013

–          Jobs supported (a measure of both new and existing jobs) reached 3.94 million in 2014, up from 2.81 million the year before

We are cautiously optimistic going forward. If our activity is any indication, 2015 will be even bigger and better than 2014. We will keep you posted…