A report commissioned by the NAIOP Research Foundation and prepared by an economist associated with George Mason University, concluded that development and construction of commercial real estate contributed approximately $450 billion to the United States Gross Domestic Product (GDP) in 2015, while supporting 3.2 million new and existing jobs last year.
This activity was led by warehouse construction which gained 10.8% over the past year, representing its fifth consecutive year of strong growth. According to the report, there was nearly 430 million square feet of commercial real estate space built in 2015, with capacity to house 1.1 million new workers.
The impact on the State of Maryland concerning construction and real estate total output exceeded $1.65 billion last year, a figure that encompasses spending on soft costs, site development, hard costs and tenant improvements, a figure that ranks Maryland among the top twenty in the country. Nearly 11,000 jobs were supported by these activities in the local region.
“These figures validate the critical importance of healthy and growing commercial real estate and construction industries, and their essential contributions annually to a robust economy,” stated Brendan Gill, President of NAIOP Maryland, the local association comprised of more than 380 professionals working for real estate development companies, brokerage firms and affiliated companies. “Activity among all real estate product types continues to remain robust, and this represents great news for the Maryland economy, local businesses and residents.”