New commercial real estate development in the U.S. remains a major driver of economic activity, c producing significant contributions to the national and state economies, according to theEconomic Impacts of Commercial Real Estate research study conducted annually by the NAIOP Research Foundation. The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2023 resulted in direct expenditures of $913.1 billion and contributed $2.5 trillion to U.S. GDP.
Total construction spending was up an estimated 5.6% in 2023 and accounted for approximately 20.6% of total GDP, including the multiplier effect. The subsector of nonresidential construction was a strong performer, with the value of completions increasing 21.9% year-to-date as of October 2023.
“Overall, commercial real estate continues to be a vibrant and important contributor to the nation’s economy,” said Marc Selvitelli, president and CEO, NAIOP. “We are seeing some adjustment in construction activity, notably in the industrial sector, whose growth had been on a record-setting trend following changes to the retailing paradigm driven by the pandemic and other economic forces. We are bullish that as those forces settle out, commercial real estate will expand in 2024.”
Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces.
Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications.
Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).