New Report: Economic Impacts of Commercial Real Estate (2019 Edition)

Posted on February 20, 2019

The NAIOP Research Foundation has published the Economic Impacts of Commercial Real Estate report.

Combining the economic contributions of new development with the economic contributions from operation of existing buildings, the following economic contributions were made:

• Contributed $1.0 trillion to U.S. GDP
• Generated $325.9 billion in salaries and wages
• Supported a total of 8.3 million new and existing jobs

Key factors impacting economic growth in 2019 and beyond include the following:

• Interest rates. They are projected to move higher in 2019 as the Federal Reserve raises its rate three-quarters of a point in two or three increments over the year;
• Labor shortages. They are already appearing in several key sectors—construction is one of them—and will tighten further in 2019 with resulting increases in wage inflation;
• Energy prices. which unexpectedly declined during the second half of 2018 are expected to rebound in 2019 to their highest levels since 2014; and
• The resolution of trade wars and higher tariffs instituted in 2018 and how these might affect U.S. exports, which increased their contribution to GDP expansion in 2018.

Read the Report