Article Originally Posted by AZBigMedia on February 27, 2023
When it comes to commercial real estate development, Arizona is the second highest ranking state in the U.S. for overall contributions of real estate to state GDP of $91.3 billion, $41.2 billion in direct spending, $37 billion in personal earnings, and 661,000 jobs supported in 2022, according to a new report. Here's what is driving the state:
• Warehouse: Arizona ranks #3 behind Florida and Texas
• Industrial (includes manufacturing): Arizona ranks #2 behind Texas
• Retail: Arizona ranks #10
The data is from “Economic Impacts of Commercial Real Estate, 2023 U.S. Edition” published annually by the NAIOP Research Foundation.
Nationally, the impact of new commercial real estate development in the U.S. continues to grow.
The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2022resulted in direct expenditures of $826.9 billion and the following impacts on the U.S. economy:
• Contributed $2.3 trillion to U.S. gross domestic product (GDP).
• Generated $831.8 billion in personal earnings.
• Supported 15.1 million jobs.
“The data in the report are strong economic indicators of commercial real estate development investment, job growth, and subsequential contributions to the U.S. economy,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “Our success could be met with headwinds as inflation, workforce constraints and higher interest rates create uncertainty. Our Research Foundation, legislative team and education will keep our members and industry professionals informed on these issues and offer resources as the industry navigates potentially choppy waters.”