The New Jersey Chapter of NAIOP, the Commercial Real Estate Development Association, is the leading organization for owners, developers and related professionals in office, commercial, industrial and mixed-use real estate and the logistics sector. Founded in 1970, NAIOP New Jersey provides unparalleled business development opportunities, professional education and advocacy for our members. NAIOP New Jersey advances responsible, sustainable development that creates jobs and benefits the communities in which our members work and live.
The industry we represent:
NAIOP: Commercial Real Estate Impact on U.S. Economy Grows
The impact of new commercial real estate development and of the ongoing operations of existing commercial real estate buildings in the United States continues to grow, according to the annual Economic Impacts of Commercial Real Estate, 2022 U.S. Edition, research study conducted by the NAIOP Research Foundation.
The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2021 resulted in direct expenditures of $434 billion and the following impacts on the U.S. economy:
Based on the existing stock of commercial buildings — totaling 51 billion square feet at the end of the third quarter of 2021 — direct expenditures for building operations totaled an estimated $194.5 billion and contributed $531.5 billion to GDP. These direct expenditures also generated $187.2 billion in personal earnings (wages and salaries) and supported 4.2 million jobs.
According to the report, in March and April 2020, the construction industry lost 1.1 million jobs, or 14.6% of employment; by November 2021, it added back 1 million jobs, leaving a deficit of 115,000 (1.5%) from the pre-recession peak. Aside from the impact on labor, the construction industry at large was spared the impact from the pandemic recession. The continued demand for new construction throughout the pandemic has positively impacted the economy. The demand for construction inputs—from design services to construction goods and labor—meant that the industry was a catalyst for the economic recovery. The construction industry continues to lead the overall U.S. economic recovery from the pandemic recession." Read more from NAIOP.