Commercial real estate development in the United States remains a key driver of economic growth, making significant contributions to both national and state economies. According to the annual Economic Impacts of Commercial Real Estate research study conducted by the NAIOP Research Foundation, new commercial building development and existing commercial building operations combined resulted in direct expenditures totaling $913.1 billion and contributing $2.5 trillion to U.S. GDP in 2023.
In 2023, total construction spending increased by an estimated 5.6%, accounting for approximately 20.6% of total GDP when considering its multiplier effect on other industries. Nonresidential construction was particularly strong with a year-to-date increase of 21/9% as of October.
NAIOP President and CEO Marc Selvitelli stated that “commercial real estate continues to be a vibrant and vital contributor to our nation’s economy.” While there has been some adjustment in construction activity due to changing retail trends caused by the pandemic, Selvitelli is confident that commercial real estate will continue expanding throughout 2024.
