Southern New Jersey Overlook

STUDY SHOWS: COMMERCIAL REAL ESTATE DEVELOPMENT KEEPS ECONOMY FROM STALLING DESPITE HOUSING SLOWDOWN
 
According to a recently publish report based on analysis conducted by the Center for Regional Analysis at George Mason University (CRA) and sponsored by the National Association of Industrial and Office Properties (NAIOP) Research Foundation, in 2005 -- the latest comprehensive data available -- commercial real estate spending (Office, Industrial and Retail Development) added $498.4 billion to the Gross Domestic Product (GDP), which was $11.9 trillion that year. By comparison, the federal government contributed $498.8 billion to the 2005 GDP (Ref: www.bea.gov).

The basis of commercial real estate's on-going sustainability lies in its three phases of development:

* Soft costs (such as architects, engineering, marketing, legal, management), site development, and tenant improvements
* Hard costs (actual construction costs)
* Building operations (such as maintenance, repair, custodial services, utilities, and management)

And recently, according to Census Bureau data as of April, 2007, an increase in the "hard costs" of construction of 2.4% more than makes up for the 1% drop in commercial construction.

Click here for full press release by the NAIOP about the report.
 
 
 
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