8C — July 31 - August 13, 2015 — Brokerage Directory — Mid Atlantic Real Estate Journal
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Projections indicate 2015 will be the best year of the decade 2014 was the best year for commercial real estate development since 2007
ment indus- try in 2014 saw its best y e a r s i n c e 2007, accord- ing to an an- nual report on the state of the indus- try released W
ASHINGTON, DC — The commercial real estate develop-
contributions yielded by the development process increased significantly by 40% over the previous year, the largest gain since the market began to re- cover in 2011. Direct expendi- tures for 2014 totaled $174.31 billion, up from $124 billion the year before, and resulted in the following economic contribu- tions to the U.S. economy: Total contribution to U.S. GDP reached $528.09 billion, up from $376.35 billion in 2013. w Personal earnings (or wages and salaries paid) to- taled $168.42 billion, up from $120.02 billion in 2013.
w Jobs supported (a measure of both new and existing jobs) reached 3.94 million in 2014, up from 2.81 million the year before. “The industry is getting back to full health and making an even bigger contribution to our national economy, but it still has plenty of room to grow. Office and industrial l were very strong and we believe the activity in these areas will keep accelerating. We hope Congress can agree on a bipartisan in- frastructure investment pack- age and continues to provide incentives for capital invest-
ment to keep the job creation going strong,” said Thomas Bisacquino, NAIOP president and CEO. As Construction Spending Increases the U.S. Economy Grows 2015 projections show ac- celerating construction spend- ing, with single-digit gains in fixed investment in commercial structures such as office, retail, health care and distribution facilities. As construction con- tinue to grow between 2014 and 2015, the U.S. economy’s growth rate is projected to increase from 2.4% in 2014
to 3.0% in 2015 and continue its expansion at least through 2020, according to IHS data in the report. Summary of Performance by Product Type: Office construction expen- ditures increased by 29.8% in 2014, extending their gain of 23.3% in 2013. Retail construction expendi- tures also increased in 2014, but only slightly, increasing 1.1% from 2013, when they had registered a 4.8% gain. w Warehouse construction registered a fourth strong year of increased expenditures in 2014, gaining 19.7%. In 2011, expenditures for warehouse construction increased 17.8%; in 2012, they increased an- other 28.4%; and in 2013, they increased 38.1%. Preconstruction and Site Development Expenditures Account for Nearly Half of all Expenditures in 2014: The preconstruction devel- opment phase continued to contribute to nearly half of all expenditures in 2014. Soft con- struction costs (architecture, engineering, marketing, legal, management, administration), and site development costs (grading, paving, landscap- ing, roadway, parking, off-site improvements), totaled $56.2 billion in direct expenditures, resulting in: The report includes detailed data on commercial real estate development activity in all 50 states, and also ranks the top 10 states specifically according to office, industrial, warehouse and retail categories. The report is authored by Dr. Stephen S. Fuller, direc- tor of the Center for Regional Analysis at George Mason University, and funded by the NAIOP Research Foundation. An executive summary and the full report is online: www. naiop.org/contributions2015. NAIOP, the Commercial Real Estate Development Associa- tion, is the leading organiza- tion for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP provides unparalleled industry network- ing and education, and advo- cates for effective legislation on behalf of our members. NAIOP advances responsible, sustain- able development that creates jobs and benefits the communi- ties in which our members work and live. For more information, visit www.naiop.org. n
Thomas Bisacquino
by the NAIOP Research Foundation . The report, en- titled “The Economic Impacts of Commercial Real Estate,” determined that the economic
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