The report, produced in conjunction with the Leeds School of Business, Dodge Construction Network, and NCREIF, stated the combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2024 resulted in direct expenditures of $898.5 billion.
The overall impact on the U.S. economy included a contribution of $2.5 trillion to U.S. GDP, generation of $862.5 billion in personal earnings, and support of a total of 14.2 million jobs. The data also revealed that each $1 of construction spending generated a total value of $2.95 to the economy.
Data center development is a significant source of growth for the industry. Private data center project completions have grown rapidly since the beginning of 2023, and are now equal to more than half the construction value of non-data center office projects, according to the U.S. Census Bureau.
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While industrial and warehousing starts are down, they remain significantly above pre-pandemic levels. Much of the new construction now coming online can be attributed to recent reshoring efforts in the U.S. and incentives from The CHIPS Act and Inflation Reduction Act.
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Demand for retail space in 2024 remained strong and shifted toward smaller, more creative spaces. Retailers focused on experiential shopping with a personalized touch.
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Although non-data center office construction has slowed, there are early indications that demand for office space has begun to recover in some major markets, with a shift in demand to high-quality office properties.
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In 2024, demand for residential and nonresidential construction was strong as worker shortages, supply chain disruptions, and inflation began to normalize. The economy as a whole continued to stabilize, with real GDP projected to grow an estimated 2.7% in 2024.
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“The commercial real estate development industry remains an engine for growth across the United States,” said Marc Selvitelli, CAE, president and CEO, NAIOP. “A surge in manufacturing projects that were initiated over the last two years are now coming online, and new data center construction is providing the infrastructure for exponential advancements in technology and the use of AI in everyday life.”
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