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NAIOP-Maryland Fact Sheet

The three stages in the life of a commercial building.

Soft costs, site development and tenant improvements

Architects, engineers, developers and marketing/design professionals working during the development phase begin the life span of a commercial building.

Hard costs

During the construction phase, new commercial projects employ workers who spend their paychecks in the local economy and contribute to the tax base.

Operating costs

After new commercial buildings are completed and occupied, they add to the productive capacity of their host economies. The outlays that support the new buildings’ operations add ongoing annual sources of economic impact that accumulate over the life span of commercial buildings.

Fast Facts

More than 200 companies involved with the commercial real estate industry, including vendors and associated firms, are members of NAIOP-Maryland.

Existing buildings in Maryland contribute more than $51 million in direct spending and $102 million in total output to the economy. This generates $31.2 million in income and supports more than 1000 jobs.

The commercial real estate development industry is one of the leading employers in the United States, supporting nearly five million jobs across all sectors of the national economy.

The industry also generates personal earnings of $170 billion and contributes more than $548 billion to the Gross Domestic Product.

The following data provides the soft costs, site development, tenant improvements and construction (hard) costs for the State of Maryland.

Sources	Direct spending	Total output	Personal income	Jobs
New Office buildings	$1.34 billion	$2.9 billion	$862 million	25,000
New Industrial Buildings	$128 million	$274 million	$82 million	2400
New warehouse Buildings	$371 million	792 million	$237 million	6700
New retail	$853 million	$1.8 billion	$546 million	15,400
Total	$2.7 billion	$5.8 billion	$1.7 billion	49,000