Sources: NAIOP Research Foundation, Washington, D.C.; CP staff
Three years into measurable market recovery, a report for the Commercial Real Estate Development Association tracks strength in four major segments of nonresidential building, while listing the top 10 states for project activity based on dollar volume.
The NAOIP Foundation’s “Economic Impacts of Commercial Real Estate” report—reflecting 2013 versus 2012 figures—notes:
- Industrial development posted a year-over-year gain of 48.5 percent due mainly to groundbreaking of energy-processing facilities.
- Warehouse construction registered a third strong year of increased expenditures in 2013, gaining 38.1 percent in 2013. This is on top of 2012 growth of 28.4 percent and 2011 growth of 17.8 percent, showing a sustained increase in demand for warehousing space.
- Office construction expenditures rose for a second year in 2013, up 23.3 percent from 2012.
- Retail construction expenditures rose modestly for a third year in 2013, up 4.8 percent from 2012.
Top 10 states by construction value for Office, Industrial, Warehouse and Retail projects are:
- New York
- West Virginia
Louisiana, Maryland, West Virginia and Georgia joined the leader list for 2013, displacing Illinois (11, this year’s rank), Ohio (14), Massachusetts (15) and North Carolina (18).
“Economic Impacts of Commercial Real Estate” 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. Authored by George Mason University’s Dr. Stephen S. Fuller, the report is posted at www.naiop.org/contributions2014.