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The Impact of Commercial Real Estate on the U.S. Economy

Commercial real estate (CRE) has long been essential to the U.S. economy, as evidenced by a recent report from the NAIOP Research Foundation. According to this analysis, the sector contributed an astounding $3.5 trillion to the Gross Domestic Product (GDP) of the United States and provided support for approximately 20.4 million jobs. This substantial economic footprint underscores the significance of CRE in not only driving growth but also in shaping communities across the nation.

Insight Into Economic Contributions

The NAIOP's study examined data from 2025, focusing on both new development and the ongoing operations of existing buildings. It revealed that direct expenditures relating to CRE reached about $1.4 trillion in 2025. This direct spending had a ripple effect throughout various industries, effectively generating significant multiplier effects that bolstered economic activity across the country.

New Development Factors

One of the key findings of the report highlights that new development alone accounted for a remarkable $1.6 trillion in GDP contributions. This development facilitated the creation of 7.4 million jobs in sectors like construction, professional services, and building operations, and amassed $555 billion in personal earnings for those employed. Every phase of the development lifecycle, from preconstruction to tenant improvements, contributed to this economic surge.

Ongoing Operations in Perspective

As of the second quarter of 2025, there was 73.8 billion square feet of commercial real estate space in operation. These ongoing operations contributed a striking $2.0 trillion to the GDP and generated personal earnings of approximately $697.5 billion. More than 13.1 million jobs were supported by these ongoing operations, demonstrating the importance of existing buildings in fueling local economies.

The Combined Value of CRE

When combining the economic contributions from new commercial development and ongoing operations of all real estate sectors—including commercial, residential, institutional, and infrastructure—the total contributions soar to $3.5 trillion in U.S. GDP, $1.3 trillion in personal earnings, and a staggering 20.4 million jobs. This figure emphasizes the pivotal role that commercial real estate plays in the economy.

The Broader Impact of CRE

Marc Selvitelli, president and CEO of NAIOP, expressed that this research elucidates what many communities have already come to understand: commercial real estate is a vital engine of economic activity. Developers, through their efforts, play a crucial role in shaping the infrastructure that supports how individuals live and work.

Moreover, the impact of commercial real estate extends well beyond construction projects. Development activities support a wide variety of professional sectors, including architecture, legal services, marketing, and even interior design. This expansive economic influence highlights how intertwined the real estate sector is with the broader economy.

Conclusion

In summary, the NAIOP Research Foundation's comprehensive study presents a clear picture of commercial real estate's multifaceted role in the U.S. economy. It not only drives construction activity but also serves as a long-term source of employment, income generation, and economic stabilization at national, state, and local levels. As the country continues to navigate challenges and prioritize growth, the commercial real estate sector stands as a testament to the potential for economic contribution through development and operations.

For those interested in a thorough understanding of this sector, the full report contains detailed national and state-level data, including insights into leading states for development across various sectors such as industrial manufacturing, warehouse, office, retail, and multifamily buildings.

About NAIOP

The Commercial Real Estate Development Association, known as NAIOP, is at the forefront of promoting best practices for developers, owners, investors, and allied professionals in office, industrial, retail, and mixed-use real estate.

About the NAIOP Research Foundation

Established in 2000, the NAIOP Research Foundation aims to support individuals and organizations involved in real estate through research and dissemination of information about the positive impacts of real properties on communities throughout North America.