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NAIOP: CRE Contributes $2.5T to US GDP in 2023
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 the Economic 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.”
- ◦Development
