write a phd proposal about the real estate developers and urban development
Stephen S. Fuller, PhD Dwight Schar Faculty Chair and University Professor
Director, Stephen S. Fuller Institute,
Schar School of Policy and Government
George Mason University | Arlington, Virginia
2017 EDITION
Economic Impacts of Commercial Real Estate
produced in conjunction with
© 2017 NAIOP Research Foundation
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Prepared for and funded by the NAIOP Research Foundation
Construction data provided by Dodge Data & Analytics
By
Stephen S. Fuller, PhD
Dwight Schar Faculty Chair and University Professor
Director, Stephen S. Fuller Institute,
Schar School of Policy and Government
George Mason University | Arlington, Virginia
January 2017
Economic Impacts of Commercial Real Estate 2017 Edition
About NAIOP NAIOP, the Commercial Real Estate Development Association, is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. NAIOP comprises some 18,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit naiop.org.
The NAIOP Research Foundation was established in 2000 as a 501(c)(3) organization to support the work of individuals and organizations engaged in real estate development, investment and operations. The Foundation’s core purpose is to provide these individuals and organizations with the highest level of research information on how real properties, especially office, industrial and mixed-use properties, impact and benefit communities throughout North America. The initial funding for the Research Foundation was underwritten by NAIOP and its Founding Governors with an endowment fund established to fund future research. For more information, visit naiop.org/research.
About Dodge Data & Analytics Dodge Data & Analytics is the leading provider of data, analytics, news and intelligence serving the North American construction industry. The company’s information enables building product manufacturers, general contractors and subcontractors, architects and engineers to size markets, prioritize prospects, target and build relationships, strengthen market positions and optimize sales strategies. The company’s brands include Dodge, Dodge MarketShare™, Dodge BuildShare®, Dodge SpecShare®, Sweets, Architectural Record and Engineering News-Record. For more information, visit construction.com.
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Economic Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Building and Nonbuilding Expenditures (U.S. Census Data) . . . . . . . . 5
Office, Industrial, Warehouse and Retail Development Expenditures (Dodge Data & Analytics Data) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Outlook: Residential and Nonresidential Construction and the U.S. Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Jobs Housed and Payroll Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Note on 2016 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Survey of NAIOP Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Appendices
Appendix A: Soft Costs Impacts by States . . . . . . . . . . . . . . . . . . 21
Appendix B: Site Development Impacts by States . . . . . . . . . . . . . 26
Appendix C: Hard Costs Impacts by States . . . . . . . . . . . . . . . . . 31
Appendix D: Tenant Improvement Impacts by State . . . . . . . . . . . 36
Appendix E: Total Impacts by State . . . . . . . . . . . . . . . . . . . . . . . 41
Appendix F: Operating Impacts by State . . . . . . . . . . . . . . . . . . . 46
Appendix G: National and State Multipliers . . . . . . . . . . . . . . . . . 51
Contents
Disclaimer The data collection measures included in this report should be regarded as guidelines rather than as absolute standards. The data may differ according to the geographic area in question, and results may vary accordingly. Local and regional economic performance is a key factor. Further study and evaluation are recommended before any investment decisions are made.
This project is intended to provide information and insight to industry practitioners and does not constitute advice or recommendations. NAIOP disclaims any liability for action taken as a result of this project and its findings.
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Introduction
Since 2008, NAIOP has conducted this study for purposes of estimating the annual economic contribution of commercial real estate development to the U.S. economy. The study uses key data sets from the U.S. Census Bureau and Dodge Data & Analytics (formerly McGraw-Hill Construction). (Dodge Data & Analytics, which purchased McGraw-Hill Construction in 2014, made no changes to its data or data capture methodologies.) It applies several processes and methodologies to take “snapshots” of the commercial real estate development industry from various angles and across several scales.
At the greatest scale, the study calculates the contribution of building and nonbuilding construction to the U.S. economy for the year in review. The product types included in this broad measure are residential, nonresidential and infrastructure projects in the construction pipeline, based on U.S. Census data on the value of construction put in place. Appropriate multipliers supplied by the Bureau of Economic Analysis are applied to reflect the effects of construction expenditures on U.S. gross domestic product (GDP), the associated generation of new personal earnings and the jobs supported by these direct expenditures. (See Table 1.)
Table 1 Economic Contributions from Building and Nonbuilding Construction
Year Direct Expenditures (In Billions of Dollars)
Total Economic Contribution1
to GDP (In Trillions of Dollars, Includes
Multiplier Effect)
Percent Contribution to U.S. GDP
Personal Earnings2
(In Billions of Dollars, Includes Multiplier Effect)
Jobs Supported3
(In Millions, Includes Multiplier
Effect)
2016
20154
2014
2013
2012
2011
2010
2009
2007
$1,160.0
1,104.2
993.4
910.8
857.0
787.4
803.6
907.8
1,160.0
$3.376
3.214
2.891
2.80
2.65
2.27
2.31
2.90
3.97
18.3%
17.9
16.6
16.7
16.3
15.0
15.9
20.5
28.8
$ 1,068.2
1,016.9
914.8
887.0
836.9
677.0
691.0
870.0
1,225.0
23.8
22.7
20.4
21.3
20.1
17.2
17.6
24.0
33.2
Sources: U.S. Census, Value of Construction Put in Place; GMU Schar School of Policy and Government, Stephen S. Fuller Institute 1 The total value of goods and services generated directly and indirectly as a result of construction and related expenditures within the U.S. 2 The additional earnings (wages and salaries) generated within the U.S. from construction and related expenditures. 3 The jobs supported by the spending and re-spending of direct expenditures for all phases of development and operations. 4 Revised 2015 data for construction spending.
Note: Data include construction of residential and nonresidential buildings as well as infrastructure for water, sewer, highways and power. Values in all tables in this study may not add up due to rounding.
2 | Economic Impacts of Commercial Real Estate
Zeroing in exclusively on commercial real estate — the core of this study — the analysis begins with Dodge Data & Analytics data relating to square footage and values for office, industrial, warehouse and retail projects. It examines expenditures made during four distinct phases of the development process, including pre-construction (soft costs), site development, on-site construction (hard costs) and tenant improvements. (Financing fees, insurance and taxes are not included in this analysis within the soft construction costs category, because they have little immediate economic impact.)
This study also examines the contribution of building operations, which are reported as a stand-alone phase that follows development. The impacts are shown for the estimated 410.1 million square feet of buildings that commenced construction in 2016, according to Dodge Data & Analytics.
Multipliers are applied to the direct expenditures to calculate the contribution to U.S. GDP, personal earnings and jobs supported during each distinct development phase. Apartment and hotel properties are not included in these calculations. (See Table 2.)
The full measure of the economic impact of office, industrial, warehouse and retail development includes all of the expenditures associated with each phase of the development process. In addition to the wide range of on-site construction services, these expenditures also support a wide range of professional and business services, including:
• Architecture and engineering services.
• Legal services.
• Marketing and management services.
• Grading, paving and landscaping services.
• Site engineering services.
• Interior design and construction services.
This combination of spending for pre-construction, construction and post-construction activities required to deliver buildings ready for occupancy represents the development industry’s total direct contribution to national, state and local economies. It provides the appropriate basis for calculating the economic impacts of this spending as represented by its contribution to GDP, personal earnings (wages and salaries) and employment.
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Table 2 Economic Contributions to the U.S. Economy from Development of Commercial Real Estate Buildings
Development Phases Operations
Phase
Pre-Construction Construction Post-
Construction
Soft Construction (Soft Costs)
Site Development
Hard Construction (Hard Costs)
Tenant Improvements
Totals Building
Operations
architecture, engineering,
legal, marketing, management, administration
grading, paving,
landscaping, roadway, parking, off-site
improvements
labor, materials,
construction management
interior design and construction
(excludes furniture and equipment)
maintenance, repairs,
custodial, utilities, property
management
Direct Expenditures (In Billions of
Dollars)
2016 $25.06 $21.42 $ 82.96 $30.60 $ 160.04 $1.42
2015 2014 2013 2012
23.84 27.64 19.66 15.88
20.20 28.56 21.07 17.34
81.17 87.76 61.65 49.18
29.80 30.35 21.84 17.73
155.01 174.31 124.22 100.13
1.39 1.34 1.11 0.96
In 2016, direct expenditures of $160.041 billion contributed $464.99 billion to U.S. GDP.
Total Economic Contribution1
to GDP (In Billions of
Dollars, Includes Multiplier Effect)
2016 $72.19 $62.34 $241.40 $89.06 $464.99 $3.74
2015 2014 2013 2012
68.68 75.54 53.73 43.39
58.79 88.12 65.00 53.51
236.20 270.77 190.22 151.75
86.71 93.66 67.40 54.71
450.38 528.09 376.35 303.36
3.67 3.71 3.07 2.64
In 2016, direct expenditures of $160.041 billion generated $150.49 billion in personal earnings in the U.S.
Personal Earnings2
(In Billions of Dollars, Includes Multiplier Effect)
2016 $26.18 $19.73 $76.39 $28.18 $150.49 $1.07
2015 2014 2013 2012
24.91 25.18 17.91 14.46
18.60 27.89 20.57 16.94
74.75 85.70 60.21 48.03
27.44 29.65 21.33 17.32
145.70 168.42 120.02 96.75
1.05 1.17 0.97 0.83
In 2016, direct expenditures of $160.041 billion supported 3.3 million jobs in the U.S. economy.
Jobs Supported3
(Includes Multiplier Effect)
2016 538,680 439,801 1,703,149 628,352 3,309,982 27,833
2015 2014 2013 2012
512,509 508,712 361,866 292,219
414,765 668,953 493,314 406,107
1,666,470 2,055,112 1,443,779 1,151,784
611,755 710,831 511,530 415,236
3,205,499 3,943,608 2,810,510 2,265,346
27,299 29,398 24,285 20,929
Sources: NAIOP; Dodge Data & Analytics; GMU Schar Fuller 1 The total value of goods and services generated directly and indirectly as a result of construction and related expenditures within the U.S. 2 The additional earnings (wages and salaries) generated within the U.S. from construction and related expenditures. 3 The jobs supported by the spending and re-spending of direct expenditures for all phases of development and operations.
Note: Data include office, industrial, warehouse/flex and retail buildings under construction in the year indicated and excludes existing inventory. Operations figures are based on buildings delivered in the year indicated.
4 | Economic Impacts of Commercial Real Estate
This study also includes the economic contributions of existing buildings. Based on the existing stock of commercial buildings, totaling 45.8 billion square feet in 2016, direct expenditures for building operations totaled $150.1 billion and contributed $396.0 billion to GDP. These direct expenditures also generated $113.9 billion in personal earnings (wages and salaries) and supported a total of 2.944 million jobs. (See Table 3.)
Combining the economic contributions of new development with the economic contributions from operations of existing buildings in 2016 (data from Tables 2 and 3), direct expenditures of $310.1 billion resulted in the following economic contributions to the U. S. economy:
• Contributed $861.0 billion to U.S. GDP.
• Generated $264.4 billion in personal earnings.
• Supported a total of 6.25 million jobs.
Table 3 Economic Contribution to the U.S. Economy from Operations of Existing Buildings, 2010-2016
(In Billions of Current Year Dollars)
Year Total Square Feet
(In Billions)
Direct Expenditures for
Building Operations
Total Economic Contribution1
to GDP
Personal Earnings2
Jobs Supported3
(In Millions)
2016
2015
2014
2013
2012
2011
2010
45.820
45.070
44.010
43.934
43.208
42.098
42.008
$150.1
145.6
138.1
134.3
134.5
140.7
134.8
$396.0
384.1
381.3
370.9
371.5
366.6
342.4
$113.9
110.1
120.1
116.8
117.0
107.6
100.2
2.944
2.856
3.023
2.941
2.945
2.758
2.413
Sources: BOMA; Newmark Grubb Knight Frank (NGKF); GMU Schar Fuller 1 The total value of goods and services generated directly and indirectly as a result of building operating expenditures within the U.S. 2 The earnings generated within the U.S. from direct expenditures for building operations. 3 The jobs supported by the spending and re-spending of direct outlay associated with building operations.
Note: Building operations include maintenance repair, cleaning, utilities, security, building management and administrative expenses; see Appendices for state and building type data.
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Building and Nonbuilding Expenditures (U.S. Census Data)
The U.S. economy continued its recovery during 2016 although it did not achieve as strong a growth rate as initially projected. Expectations for stronger growth at the beginning of the year were damped early by global uncertainty relating to the European and Asian economies’ continuing weak performance, the Brexit vote in Great Britain, the strengthening of the U.S. dollar, continuing weakness in the energy sector, and the slow drawdown on excess domestic inventories. These factors and others combined to cap GDP growth in the first quarter at 0.8 percent followed by a weak 1.4 percent gain in the second quarter. GDP accelerated in the third quarter (3.2 percent) but slowed in fourth quarter with an estimated gain of 1.8 percent. Combined, for the full year, GDP growth is estimated at 1.6 percent for 2016, a full percentage point below beginning-of-the year projections.
Due to this weak performance, the Federal Reserve Board, which raised its benchmark rate a quarter point in December 2015 and expected to continue these increases three or four more times in 2016, raised the federal funds rate just one time, by a quarter point at its December 2016 meeting. However, there are signs of increasing inflationary pressures and the Fed has achieved its full employment goal, suggesting that the federal funds rate could be increased multiple times in 2017.
The wildcard for 2017 is the uncertainty surrounding the economic policies of the new Trump Administration. Expectations for a significant fiscal stimulus have brightened business optimism and pushed the U.S. stock market higher following the election in November. As a result of market gains and rising interest rates, the dollar has also strengthened, further undermining the growth of U.S. exports and increasing demand for imports. Rising commodity prices, especially for petroleum, are likely to fuel these market
Economic Contributions
dynamics even further. Faster global economic growth will likely result from these global price increases. Faster U.S. GDP growth may also occur in the short term although shortages of qualified labor, higher consumer prices and rising inflationary pressures may result in accelerating interest rate increases designed to dampen these growth pressures before they damage the economy’s longer-term outlook.
Construction Activity Contributes to Ongoing Economic Growth in 2016. A key factor in the economy’s growth in 2016 was the continuing expansion of the construction sector, with construction spending increasing each year since 2011, gaining 48.7 percent between 2011 and October 2016. For the year ending in October 2016, total construction spending was up 3.4 percent exceeding the GDP growth rate for this period.
Residential construction spending registered a gain of 4.6 percent for the 12-month period ending in October 2016, after gaining 17.4 in 2015. In 2016, residential starts are expected to reach 1.174 million, up 6.0 percent from 2015, for the third consecutive year in which starts exceeded 1 million units. Currently residential starts are projected to continue to increase each year through the end of the decade. However, a number of factors will contribute to a slowing rate of increase in housing starts over this period, including rising mortgage interest rates, a shift in the job mix to lower paying sectors and slower wage growth, restricted access to credit, student loan burdens, lower marriage rates, slower immigration and changing generational values and preferences. The rate of increase in housing starts is projected to moderate over this period, from 6.0 percent in 2016 and 4.9 percent in 2017 to 4.5 percent by 2020.
The value of nonresidential building construction continued its positive trend but slowed during 2016 increasing only 5.4 percent during the October 2015 to October 2016 period for an
6 | Economic Impacts of Commercial Real Estate
increase in construction spending of $23.5 billion. Since its recovery began in mid-2011, nonresidential building construction spending increased 32.9 percent through 2015, reflecting an increase of $105.0 billion in construction spending. During this growth period, the largest of the ten building-type categories experienced growth; only public safety, religious, and educational building categories had larger construction totals in 2011 than in 2015. For 2016, public safety and religious building construction continued to decline but several major building categories also slowed: warehousing and flex buildings, and manufacturing respectively experienced a 8.9 percent and a 8.6 percent decline in construction spending reflecting excess inventories from five strong years of growth and slowing global demand for manufacturing products due to unfavorable exchange rates and the economic slowdown in Asia and Europe. (See Table 4.)
Table 4 U.S. Nonresidential Construction Spending: 2013-2016
(In Billions of Current Year Dollars)
Type of Structure 2013 20141 20151 20162 % Change
2015-20163
Transportation
Health Care
Retail
Manufacturing4
Amusement/Recreation
Education
Public Safety
Office
Religious
Lodgings
Total5
$39.4
40.7
53.2
50.5
15.2
79.1
9.5
38.0
3.6
13.5
$342.7
$42.0
38.6
62.8
58.6
16.8
79.7
9.4
46.6
3.4
16.7
$374.6
$45.6
40.7
66.9
78.2
19.9
83.5
8.7
55.2
3.7
21.7
$424.1
$42.2
41.4
74.1
73.9
21.9
92.4
8.3
70.7
3.3
27.4
$455.3
- 7.4
1.0
10.8
- 5.5
9.0
10.6
- 4.6
28.1
- 10.8
26.3
5.4
Source: U.S. Census, Value of Construction Put In Place, 2016 1 Revised in 2016 by the U.S. Census. 2 Change in construction values between October 2015 and 2016. 3 Percentage change between October 2015 and 2016 calculated based on unrounded totals. 4 Includes warehouse/flex space. 5 Totals include some miscellaneous state and local government buildings but exclude spending for nonbuilding construction on items relating to communications, power, highways, sewer and water.
Building and Nonbuilding Construction, Output Multipliers, and GDP. The estimated total value of building and nonbuilding construction spending put in place in the U.S. in 2016, based on U.S. Census data, is $1.16 trillion. This accounted directly for 6.3 percent of the nation’s estimated GDP of $18.45 trillion in 2016. With an output multiplier of 2.91, each $1 of this construction spending generated a total of $2.91 of value to the economy, reflecting the cumulative effects of the initial construction expenditures as
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they are re-spent throughout the economy. Applying this multiplier to the total value of direct construction spending in 2016 increases the value of its overall contribution to GDP to $3.376 trillion, accounting for 18.3 percent of the nation’s economic activity.
Contribution of Building and Nonbuilding Construction Expenditures to GDP. The total impact of construction spending — direct, indirect and induced — on the U.S. economy accounted for 18.3 percent of all economic activity in 2016. For the year, GDP increased by $403.4 billion from its 2015 value (in current dollars). In comparison to this overall gain in GDP during 2016, the total value of construction spending ($1.16 trillion) was 2.3 times greater than the year’s annual GDP growth in dollar value.
The Bottom Line. The total contribution to GDP of building and nonbuilding expenditures also generated new personal earnings and supported jobs across all sectors of the economy. (See Table 1 on page 1.) In 2016, the $1.16 trillion in construction spending:
• Contributed $3.4 trillion to U.S. GDP.
• Generated $1.1 trillion in new personal earnings.
• Supported a total of 23.8 million jobs throughout the U.S. economy.
Office, Industrial, Warehouse and Retail Development Expenditures (Dodge Data & Analytics Data)
Construction data provided by Dodge Data & Analytics for office, industrial, warehouse and retail buildings offer a more refined definition of hard construction expenditures over time. As presented in Table 5, total hard construction expenditures for these four building types totaled $83.0 billion and increased by $1.8 billion or 2.2 percent from 2015.
Office construction expenditures totaled $36.6 billion in 2016 increasing by 28.7 percent from 2015, building on their gains of 3.0 percent in 2015 and 29.8 percent in 2014.
Retail construction expenditures totaled $17.2 billion in 2016, a decrease of 7.0 percent from their 2015 level, following gains of 8.2 percent in 2015 and a 1.1 percent gain in 2014.
Warehouse construction registered a sixth consecutive year of increased expenditures in 2016, gaining 12.7 percent from 2015 for an expenditure total of $13.6 billion, following a 10.8 percent gain in 2015.
Industrial construction spending decreased sharply for a second year in 2016 to $15.5 billion declining 29.9 percent from 2015; industrial construction expenditures in 2015 were down 46.2 percent from their peak level in 2014. This pullback in industrial/manufacturing construction in 2015 and 2016 can be attributed to the downturn in the energy sector and a weakening in global demand for U.S. manufactured goods due largely to unfavorable exchange rates with the United States’ major trading partners.
8 | Economic Impacts of Commercial Real Estate
Table 5 Comparing Construction Expenditures (Hard Costs), 2015 and 2016
(In Billions of Current Year Dollars)
Building Type 2015 2016 $ Change
Office
Industrial
Warehouse
Retail/Entertainment
Total
$28.44
22.16
12.04
18.53
$81.17
$36.61
15.54
13.57
17.24
$82.96
$8.17
–6.62
1.53
–1.29
$1.79
Sources: Dodge Data & Analytics, GMU Schar Fuller
Expenditures and Square Footage (All Structures Combined). The total square feet of new construction in 2016 for these four building types posted a decline of 4.5 percent from 2015 while the value of this new construction increased by 2.2 percent. The amount of space built decreased for three of the building types (only office space increased in 2016) while the value of this added building space increased for two building types—office and warehouse. Industrial/manufacturing and retail building construction experienced decreases in both the square footage of space added and its value of construction compared to 2015. (See Table 6.)
Table 6 Office, Industrial/Manufacturing, Warehouse and Retail Construction, 2016
Building Type Square Feet (In Millions)
Construction Value1
(In Billions of 2016 Dollars)
Office
Industrial/Manufacturing
Warehouse
Retail
Total
102.8
53.5
167.0
86.8
410.1
$36.61
15.54
13.57
17.24
$82.96
Sources: Dodge Data & Analytics; GMU Schar Fuller 1 Hard costs.
Hard Construction Expenditures (All Structures Combined), Multipliers and GDP. The economic impact of this construction activity can be calculated by applying the U.S. Department of Commerce Bureau of Economic Analysis’s (BEA’s) national construction multipliers for its contribution to GDP (2.91), personal earnings (0.9209), and employment (20.5308 jobs per $1,000,000 of construction expenditure).
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State-level direct spending and associated economic impacts for pre- construction, construction and post-construction spending are included in the Appendices. It should be noted that individual state construction multipliers are smaller than the U.S. multipliers. They measure only the share of construction expenditures that are retained within the respective state economies. Construction-related spending flows that leak out of each state economy to other states are excluded. Smaller states and state economies that are less well developed tend to retain smaller portions of the benefits from construction spending than do states with larger and more complex economies; that is, a greater share of the smaller states’ direct construction spending leaks out to other states.
The Bottom Line. The total contribution to U.S. GDP from the four phases of development tracked in this study is substantial. When the latest BEA multipliers are applied, direct expenditures of $160.0 billion in 2016 resulted in a contribution of $465.0 billion to U.S. GDP, generated $150.5 billion in personal earnings and supported 3.3 million jobs. (See Table 7.)
Table 7 Office, Industrial, Warehouse, and Retail Construction and
Operations Contribution to the U.S. Economy, 2016 (In Billions of 2016 Dollars)
Direct Expenditures
Total Economic
Contribution to GDP1
Personal Earnings2
Jobs Supported3
Development Phase Soft Construction (Soft Costs)
Site Development4
Hard Construction (Hard Costs)
Tenant Improvements5
$160.04 25.06 21.42
82.96
30.60
$464.99 72.19
62.34
241.40
89.06
$150.49 26.18
19.73
76.39
28.18
3,309,982 538,680
439,801
1,703,149
628,352
Annual Operations $1.419 $3.743 $1.073 27,833
Sources: Dodge Data & Analytics; GMU Schar Fuller 1 The total value of goods and services generated directly and indirectly as a result of direct construction expenditures within the U.S. 2 The additional earnings generated within the U.S. from direct expenditures during the construction phase and post-construction phase for building operations. 3 The jobs supported nationwide by the spending and re-spending of direct expenditures associated with building construction or operations. 4 Site development includes grading, infrastructure, parking and landscaping. 5 Tenant improvements exclude furniture and equipment.
Note: See Appendices for state-level data.
10 | Economic Impacts of Commercial Real Estate
The U.S. economy has been in recovery since July 2009 with this recovery extending to seven and one-half years with the coming of 2017, making it the third longest of the 12 business cycles dating from the end of World War II. This recovery has been characterized by uneven growth rates for GDP and personal earnings, a job growth trend that has continued through the fourth quarter of 2016 achieving an unemployment rate in November 2016 of 4.6 percent (down from 5.0 percent in November 2015) equaling the pre-recession unemployment level in 2007.
In 2016, an estimated 2.6 million net new workers entered the economy, for a 1.8 percent employment growth rate. While this growth rate slowed in 2016 from last year’s 2.1 percent gain, the job base continues to perform well, given this late stage of the business cycle and the tightening of the labor market. Rising consumer confidence and continued low energy costs have supported increased consumer spending in 2016. Still, ongoing weakness in manufacturing, attributable primarily to decreased exports and lower demand for petrochemical products, dampened the GDP forecast in 2016 with annual GDP growth estimated at 1.6 percent, well below the beginning-of-the-year projection of 2.6 percent.
Factors that will constrain economic growth in 2017 include higher interest rates, a tightening labor force and resultant wage inflation, and slowly rising prices in general and for energy, specifically. Combining with the continued strength of the U.S. dollar (that is putting downward pressure on exports) and weakness in the global economy, these conditions are projected to keep economic growth in 2017 to 2.3 percent. In contrast to the above-cited conditions acting to constrain economic growth in 2017, the lengthy and continuing recovery of the residential and nonresidential construction sectors are projected to underpin the growth of the economy in 2017 as they did in 2016.
Outlook: Residential and Nonresidential Construction and the U.S. Economy
Residential building construction spending has increased each year since 2010 and is up 87.4 percent over this period through October 2016. Multifamily housing construction has increased its share of residential construction spending during the recovery and is expected to retain a larger share of residential construction spending even after single-family housing construction increases towards its equilibrium level of 1.5 million units annually by 2020. Current forecasts by IHS Economics (December 2016) indicate that residential construction spending is projected to increase 2.7 percent in 2017 after increasing an estimated 4.7 percent in 2016. While this trend is projected to remain positive through the end of the decade, it has slowed from an 11.7 percent increase in 2015. Going forward, it will reflect the weaker projected growth in the U.S. economy, increasing mortgage interest rates next year and beyond, changing demographics and long-term reduction of pent-up housing demand accumulated during the Great Recession.
Single- and multifamily housing starts in 2016 are estimated to have totaled 1.174 million units, a gain of 6.0 percent from 2015. Starts are projected to increase each of the next five years, with 1.231 million starts expected in 2017. By 2021, starts are projected to reach 1.5 million units. Still, just a year ago, 1.5 million starts had been expected in 2018. This underscores the slower-than-anticipated pace of growth in residential construction, dating back to the early years of the recovery. Thirty-year fixed home mortgage rates, which recently rose above 4.0 percent, are projected to exceed 5.0 percent by 2018 and to peak at 6.1 percent by 2020. These higher rates will contribute to slower gains in residential construction activity during the remainder of this business cycle.
Nonresidential construction expenditures turned positive in 2011, increased each year since, and have now gained a total of 30.6 percent through October 2016. Forecasts for 2017 confirm an
NAIOP Research Foundation | 11
uneven pattern of investment across the broad range of building types. Construction spending for manufacturing structures increased steadily over the 2011 to 2015 period (up 92.8 percent) with fixed investment in manufacturing up 30.8 percent in 2015. In contrast to this high rate of increase, fixed investment in manufacturing structures is estimated to have decreased 4.3 percent in 2016 and to have decreased by 4.5 percent in 2017. Longer-term projections for manufacturing investment show it continuing to decline slightly in 2018 and 2019 and then turning positive in 2020.
Construction spending for office buildings was up sharply in 2016 (24.8 percent through October 2016 ) and is projected to continue to grow in 2017. The value of retail construction put in place in 2016 was also up from 2015, increasing 6.8 percent between October 2015 and October 2016. However, the outlook for continued growth of retail construction is for slower gains over the remainder of the decade. Construction spending for warehouse and flex space increased steadily between 2011 and 2016, but is estimated to have declined by 8.9 percent in 2016, based on the value of construction put in place. (See Table 4.)
The growth projections for nonresidential construction reflect the expected moderate performance of the U.S. economy over the next five years, with growth rates peaking in 2018 at 2.6 percent and returning to an annual growth rate in the range of 2.1 to 2.3 percent for the 2019-2021 period. The annual GDP growth rate for 2017 is forecast at 2.3 percent as of December 2016, higher than the 1.6 percent estimated for 2016 but lower than the 2.6 percent rates achieved in 2015.
Construction employment, which declined by 2.3 million jobs between 2006 and 2010, began to add new jobs in early 2011, according to the Bureau of Labor Statistics. Construction employment now has increased for a sixth year. Between November 2015 and November 2016, the construction sector added 155,000 net new jobs. From the low point in January 2011
through November 2016, a total of 1.3 million net new construction jobs were generated. Still, employment in the construction sector remained 985,000 jobs below its peak in March 2006.
The U.S. Economy. The importance of the construction sector to the recovery of the U.S. economy is well established. The recovery’s sluggishness during its first seven and one-half years, dating from July 2009, can be partially attributed to the magnitude of the correction that the construction sector endured, with its recession extending to mid-2011. Now that residential and nonresidential building construction spending has increased steadily each year from its 2011 low, the U.S. economy has gained traction. This is in spite of its disappointing performance in 2013, when GDP increased only 1.7 percent, followed by a short- lived acceleration in 2014 and in 2015, with GDP up respectively 2.4 and 2.6 percent for those years, and with GDP growth in 2016 registering only 1.6 percent, a full point below the beginning-of-the-year projection of 2.6 percent. However, the outlook to the end of the decade remains positive but the rates of GDP growth are projected to remain below historic norms.
The ongoing recovery in construction activity has been the one consistently positive force in the national economy’s performance since 2009 and it is expected to continue to strengthen. Over the next four years, the construction sector is projected to grow (by value) at annual rates ranging between 2.3 percent and 6.1 percent. This continuing expansion will support GDP gains during this same period ranging from 2.1 to 2.6 percent, according to IHS Economics (December 2016 forecast). By compensating for slower-growing sectors, the construction sector’s gains will provide the foundation that should extend the economy’s expansion into the next decade, making it the longest business cycle in history. (If the economy avoids recession through mid-2020, it will tie the previous longest business cycle record of 10 years, achieved in the 1980s).
12 | Economic Impacts of Commercial Real Estate
Table 8 Total Impacts (Soft Costs, Site Development, Hard Costs, and Tenant Improvements)
on State Economies (in Four Categories), 2016 (In Billions of 2016 Dollars)
State Direct Spending Total Output Personal Earnings Jobs Supported
Alabama 1.244 2.634 0.884 21,293
Alaska 0.085 0.146 0.052 1,054
Arizona 2.113 4.359 1.507 35,411
Arkansas 0.813 1.603 0.533 13,074
California 14.340 30.792 10.459 211,341
Colorado 2.689 5.877 2.012 45,877
Connecticut 0.684 1.268 0.417 8,083
Delaware 0.171 0.303 0.084 1,803
District of Columbia 2.829 3.303 0.296 5,157
Florida 7.598 15.752 5.441 134,152
Georgia 5.720 13.188 4.419 103,519
Hawaii 0.356 0.659 0.233 5,018
Idaho 0.447 0.816 0.282 7,014
Illinois 4.916 11.340 3.665 75,881
Indiana 1.507 3.274 1.060 24,481
Iowa 1.222 2.339 0.776 17,990
Kansas 1.772 3.494 1.065 24,934
Kentucky 1.954 4.078 1.278 31,387
Louisiana 9.966 19.724 6.787 146,085
Maine 0.175 0.331 0.115 2,831
Maryland 2.454 4.679 1.522 30,938
Massachusetts 4.603 8.883 2.889 55,435
Michigan 5.721 12.143 4.136 97,830
Minnesota 1.441 3.149 1.033 22,377
Mississippi 0.287 0.559 0.187 4,613
Missouri 2.560 5.446 1.689 39,327
Montana 0.214 0.393 0.138 3,461
Nebraska 1.268 2.385 0.799 17,969
Nevada 2.105 3.911 1.339 28,914
New Hampshire 0.126 0.243 0.077 1,616
New Jersey 3.542 7.327 2.309 46,856
New Mexico 0.311 0.548 0.191 4,713
New York 24.805 46.058 14.557 284,135
North Carolina 3.963 8.651 2.879 70,856
North Dakota 0.316 0.554 0.181 3,709
Ohio 3.235 7.358 2.391 53,488
Oklahoma 1.204 2.464 0.846 19,281
Oregon 2.762 5.557 1.810 42,541
Pennsylvania 4.080 9.123 2.916 60,298
Rhode Island 0.317 0.563 0.170 3,620
South Carolina 1.938 4.191 1.379 34,740
South Dakota 0.817 1.497 0.510 12,644
Tennessee 2.990 6.713 2.162 47,657
Texas 18.504 44.399 14.877 310,944
Utah 0.831 1.845 0.623 14,834
Vermont 0.070 0.127 0.042 1,037
Virginia 3.680 7.210 2.292 51,442
Washington 3.021 6.261 2.101 43,130
West Virginia 0.167 0.298 0.095 2,163
Wisconsin 1.975 4.045 1.379 31,873
Wyoming 0.134 0.216 0.074 1,628
State totals 160.041 332.073 108.956 2,360,453 Interstate spillovers 132.915 41.532 949,530 U.S. Total 160.041 464.988 150.488 3,309,982
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: This table includes data for the District of Columbia, resulting in 51 states.
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Table 9 Impacts of Operations on State Economies (in Four Categories), 2016
(In Billions of 2016 Dollars)
State Direct Spending Total Output Personal Earnings Jobs Supported
Alabama 10,686 19,877 6,193 187
Alaska 897 1,495 475 12
Arizona 26,019 49,665 15,857 438
Arkansas 8,869 15,622 4,800 146
California 142,159 288,248 90,048 2,138
Colorado 33,764 69,937 21,991 585
Connecticut 4,315 7,495 2,258 53
Delaware 3,240 5,417 1,371 37
District of Columbia 30,140 36,773 3,626 91
Florida 76,213 145,964 46,714 1,352
Georgia 62,120 129,118 40,144 1,079
Hawaii 2,308 4,035 1,288 35
Idaho 5,181 8,608 2,732 85
Illinois 53,444 113,148 34,142 836
Indiana 19,748 38,047 11,467 319
Iowa 13,724 23,426 7,142 209
Kansas 23,449 42,650 11,931 330
Kentucky 21,234 39,952 11,602 341
Louisiana 8,142 15,183 4,756 133
Maine 2,001 3,465 1,106 33
Maryland 37,223 67,017 20,022 493
Massachusetts 29,866 54,230 16,284 382
Michigan 30,672 58,405 18,482 500
Minnesota 17,456 34,757 10,596 276
Mississippi 3,151 5,573 1,703 52
Missouri 23,912 45,591 13,025 369
Montana 2,361 4,053 1,286 40
Nebraska 8,367 14,324 4,420 128
Nevada 19,455 33,334 10,469 287
New Hampshire 934 1,621 469 12
New Jersey 18,110 35,122 10,209 248
New Mexico 4,711 8,036 2,513 77
New York 87,860 154,970 44,096 1,052
North Carolina 56,591 110,004 34,132 1,000
North Dakota 4,671 7,814 2,295 62
Ohio 40,153 81,703 24,782 638
Oklahoma 19,977 38,550 12,035 337
Oregon 32,435 58,776 17,765 503
Pennsylvania 28,627 57,838 17,203 417
Rhode Island 585 978 271 7
South Carolina 20,178 38,443 11,693 355
South Dakota 4,393 7,187 2,242 69
Tennessee 37,736 75,383 22,707 595
Texas 208,173 462,046 142,677 3,646
Utah 11,883 24,503 7,645 222
Vermont 426 700 213 6
Virginia 55,540 100,359 29,048 747
Washington 34,179 64,220 19,980 506
West Virginia 1,499 2,499 728 20
Wisconsin 29,608 53,989 16,990 479
Wyoming 750 1,163 359 10
State Totals 1,419,132 2,761,315 835,979 21,975 Interstate Spillovers 982,057 236,955 5,859 U.S. Totals 1,419,132 3,743,372 1,072,934 27,833
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: This table includes data for the District of Columbia, resulting in 51 states.
14 | Economic Impacts of Commercial Real Estate
Jobs Housed and Payroll Value
In addition to the annual operating expenditures associated with this new building space, these buildings represent new productive capacity within the national economy. While the value of this added capacity depends on how each building is used, two measures of this value are the number of jobs this new capacity can accommodate and the amount of payroll these new jobs have the potential to generate. Using a standard jobs-per-square-foot estimate for each category of building, the total number of employees that could be housed within the buildings built in 2016 can be estimated. The total payroll value of these new workers also can be calculated by multiplying this employment estimate by the U.S. average wage earnings per worker for jobs associated with each building category.
These calculations are presented in Table 10. They show that the 410.1 million square feet of new office, industrial, warehouse and retail building space constructed in 2016 have the capacity to house 1.073 million new workers with a total estimated annual payroll of $57.6 billion.
Table 10 Jobs Accommodated and Payroll Generated in Office, Industrial,
Warehouse and Retail Space Under Construction in 2016
Building Type
Square Feet (In Millions)
Square Feet per Job
Jobs Accommodated (In Thousands)
Average Earnings per Job
Total Payroll (In Billions)
Office
Industrial
Warehouse
Retail
Total/Average
102.8
53.5
167.0
86.8
410.1
190
750
600
475
382
541.0
71.3
278.3
182.7
1,073.3
$68,129
51,569
39,858
32,401
$53,616
$36.858
3.677
11.092
7.920
$57,547
Sources: GMU Schar Fuller; U.S. Bureau of Labor Statistics; NGKF
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Note on 2016 Methodology
Previous editions of this study were based on actual construction values in a calendar year.
For 2016, full-year construction values were estimated in order to publish the economic results in January 2017, so NAIOP members would have current data to use during their annual visit to Capitol Hill in Washington, D.C., which takes place in early February of each year.
The estimates are based on the following:
• actual construction values for the year’s first nine months;
• the annual construction totals for the five preceding years (2011-2015); and
• the percentage of these values reported respectively for those years’ first nine months, by building type (office, industrial/manufacturing, warehouse and retail) and by state were calculated and averaged for each independently.
These nine-month averages were applied to the actual 2016 values for nine months to estimate the year’s 12-month values by building type and by state. (For details regarding the data cleaning, please contact the author.) The data utilized for these calculations were provided by Dodge Data & Analytics (previously McGraw Hill Construction).
16 | Economic Impacts of Commercial Real Estate
Survey of NAIOP Members
NAIOP conducted a survey of its membership between Feb. 5 and Feb. 14, 2016, to determine the values of soft costs, site development improvements and expenditures for tenant improvements relative to the hard costs associated with building office, industrial, warehouse and retail buildings. The results of this survey are used in calculating the total building costs based on the value of hard construction data provided by Dodge Data & Analytics in order to capture the full economic value of building development on the U.S. and state economies. The distribution of these costs across the four building types differ and have changed over the past seven years in response to general economic conditions, changes in the marketplace and the locations where new building construction is occurring.
Questionnaires were emailed to 1,949 NAIOP members throughout the U.S.; 77 of these emails could not be delivered. Survey participants were mainly commercial real estate developers and owners involved in the construction of office, warehouse, manufacturing and retail buildings. There were a total of 123 responses to the survey, for a response rate of 6.31 percent. Forty- eight survey respondents indicated that their primary area of work was office building development; Nine indicated manufacturing facility development; 51 indicated warehouse or flex building development; and 16 indicated retail development.
The results of this survey are presented in the table on the next page as percentages of total building costs. These percent distributions by building type are used in this report to calculate soft construction costs, site improvement costs and costs of tenant improvements based on the value of hard construction costs provided by Dodge Data & Analytics.
NAIOP Research Foundation | 17
Table 11 Survey of NAIOP Members
Building Cost Allocation Percentages (%), by Building Type 2006, 2008, 2013, 2016
Building Type
Soft Construction
Costs1
Site Development
Costs
Building Construction
Costs
Tenant Improvement
Costs
Office
2016 16.44% 13.71% 49.21% 20.63%
2013 14.40 14.50 49.50 21.60
2008 17.43 14.24 49.74 18.58
2006 17.13 15.76 49.49 17.62
Manufacturing
2016 12.25 9.38 57.13 21.25
2013 16.90 13.80 54.00 15.30
2008 14.34 19.32 52.59 13.75
2006 12.05 18.58 55.69 13.68
Warehouse/Flex
2016 14.08 15.47 57.85 12.61
2013 14.60 19.00 53.30 13.10
2008 17.09 18.54 53.64 13.73
2006 14.23 16.81 55.00 14.07
Retail
2016 17.70 14.41 49.26 18.63
2013 17.00 21.80 44.30 16.90
2008 15.76 20.82 47.00 16.41
2006 17.72 16.06 52.39 13.83
Combined 2
2016 15.37 14.19 53.24 17.20
2013 15.20 17.32 49.12 17.30
2008 15.62 17.19 51.24 15.94
2006 16.29 16.40 52.48 14.85
1 Professional services and administrative and management processes required to support the construction project. 2 Weighted average reflecting the numbers of responses by type.
18 | Economic Impacts of Commercial Real Estate
Definitions
Area of Analysis — the geographic unit of analysis, normally a political unit, for which economic, demographic and fiscal information is reported.
Building Value — construction value would include hard costs (costs of the structure) and soft costs (management, architecture and engineering, legal fees, communications); the finished commercial value would reflect cash flow potential or current performance. Assessed valuation for tax purposes may be accepted as an appropriate substitute for actual market value.
Development Costs — includes all of the construction-related expenditures associated with developing a building, which include soft construction costs, site development costs, hard construction costs and tenant improvement expenditures.
Direct Expenditures — all spending in support of all phases of new construction required to deliver the final product as well as the operation phase (after the building delivers), including payroll of the workers directly involved and all nonpayroll spending for materials, management, overhead, utilities, equipment leasing or purchases and for or by subcontractors, suppliers and vendors.
Economic Impact — the generation of new spending within a jurisdiction as a result of investing in and operating new economic activity; in this case, office, industrial, warehouse and retail buildings.
Fiscal Impact — the effect of real estate development on the revenues and expenditures of the jurisdiction within which the building is located.
Gross Domestic Product (GDP), Gross State Product (GSP), Gross County Product (GCP) — the value of goods and services produced within the economy of the respective geographic area (nation, state, county/city).
Gross Square Feet — a measure of an individual building size or aggregate inventory of building space reflecting the total envelope of the structure, which is typically larger than the occupied or usable building area.
Hard Construction Costs — a category of construction costs that reflects the expenditures for the building’s hard construction phase. Costs for labor, materials and construction management are the three basic types of hard costs. Soft construction costs, site development costs and tenant improvement expenditures are reported independently from hard construction costs.
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Indirect Benefit — the additional economic benefits (measured in dollars or jobs) resulting from the accumulated additional value generated by direct expenditures, as these dollars are re-spent within the economy. Indirect effects are calculated using Multipliers and include sales and purchases by businesses supplying goods and services in support of building construction and operation as well as the re-spending of payroll by workers (Induced Effects) associated with the new building.
Induced Effects — the contributions of the payroll spending by workers in a specific industry or sector on local businesses providing goods and services to households.
Infrastructure — utilities, roads, parking lots, storm drainage structures; other site improvements could be included in estimating these costs if not included elsewhere. If these improvements are financed by the private sector, whether on-site or off-site, their costs should be included in the base values for calculating industry economic contributions.
Interstate Spillovers — economic contributions that are generated by direct construction expenditures in a given state that are realized by another state due to workers commuting across state lines (i.e., earning wages in one state and spending these earnings in their home state) and the importation of building materials from another state. These economic impacts are not reflected in the benefitting states’ multipliers but are captured in the U.S. multipliers and reported in the U.S. totals.
Multiplier — a number used to calculate the final economic impact of one dollar spent. Types of multipliers include:
output multiplier measures the contribution of a direct expenditure on the overall economy (gross domestic product or gross state product).
employment multiplier measures the total number of jobs that can be supported by a direct expenditure (expressed in jobs supported per $1 million in direct spending).
personal earnings multiplier measures the total personal earnings (wages and salaries) generated within the state or nation as a result of a direct expenditure and the jobs it supports.
Operating Costs — Costs (expenditures) associated with the day-to-day operation of an office, industrial, warehouse or retail building including building management, utilities, normal maintenance and repair, custodial services and security. These costs do not include the operating costs of building tenants.
Output — the goods and services produced for sale to other firms or industries as intermediate goods or services or for sale to consumers as final goods or services.
20 | Economic Impacts of Commercial Real Estate
Personal Earnings — wages and salaries (payroll) paid out to all workers related directly or indirectly to the construction activity (pre-construction, construction, post-construction) for which direct expenditures are made. These wages and salaries include payment to the workers directly related to construction work being performed, employees of suppliers and vendors related to that work, and employees of businesses and organizations benefiting from the spending of these new wages and salaries generated as a result of these direct expenditures; that is, employees working in retail and consumer services, health care, education, local government and so on, whose business sales and cash flow have increased because of the new wages and salaries paid to workers in construction-related activities.
Sector — industries or firms grouped by similar characteristics of operations (e.g., retail trade sector, manufacturing sector, construction sector, services sector, government sector, etc.).
Site Development — a category of construction costs that reflect improvements made to the site before a building can be constructed. These costs include grading, infrastructure, landscaping, surface and structured parking, and other costs to prepare the site to support the functions of the building constructed on the site.
Soft Construction Costs — a category of development costs that reflects the professional services and administrative and management processes required to support the construction project. These may precede actual on-site construction by several years and may include legal and other consultant services, architectural and engineering services, management and administration.
Tenant Improvement Costs — a category of construction costs that reflects improvements made to the interior of a building to meet the needs of a specific tenant. Costs may include interior walls and partitions, floor coverings, and cabinets, but excludes furnishings. The building owner or the tenant may pay for these improvements.
Total Output — the sum of the direct and indirect benefits (expenditures) reflecting the combination of the initial expenditures by a firm and its subsequent accumulated value as this spending is recirculated throughout the economy. This includes benefits (induced) generated by the re-spending of personal earnings. This represents the total contribution to gross domestic product or gross state product.
Value Added — a measure of the incremental dollar value created by an industry, firm or individual employee as a result of its production process (work performed); the value created beyond the value of the individual inputs.
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Appendix A: Soft Costs Impacts by States
Appendix A-1 Impacts of Office Soft Costs on State Economies, 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.041 0.081 0.032 722
Alaska 0.009 0.016 0.006 124
Arizona 0.128 0.278 0.108 2,357
Arkansas 0.033 0.059 0.023 547
California 1.101 2.495 0.954 17,346
Colorado 0.196 0.454 0.174 3,629
Connecticut 0.008 0.016 0.006 103
Delaware 0.013 0.023 0.007 130
District of Columbia 0.424 0.592 0.086 1,348
Florida 0.346 0.760 0.295 6,691
Georgia 0.574 1.356 0.507 10,310
Hawaii 0.022 0.043 0.017 370
Idaho 0.034 0.062 0.025 577
Illinois 0.281 0.662 0.243 4,695
Indiana 0.071 0.143 0.054 1,225
Iowa 0.064 0.116 0.045 1,042
Kansas 0.128 0.243 0.086 1,921
Kentucky 0.041 0.081 0.029 688
Louisiana 0.033 0.065 0.026 531
Maine 0.017 0.032 0.013 297
Maryland 0.232 0.481 0.176 3,346
Massachusetts 0.478 1.008 0.373 6,514
Michigan 0.386 0.807 0.316 6,726
Minnesota 0.062 0.136 0.051 1,024
Mississippi 0.007 0.012 0.005 110
Missouri 0.155 0.320 0.109 2,329
Montana 0.015 0.027 0.011 266
Nebraska 0.026 0.049 0.019 411
Nevada 0.189 0.364 0.142 2,964
New Hampshire 0.004 0.007 0.003 53
New Jersey 0.079 0.173 0.061 1,156
New Mexico 0.023 0.041 0.016 390
New York 3.270 6.545 2.221 38,983
North Carolina 0.415 0.893 0.341 7,686
North Dakota 0.026 0.044 0.017 354
Ohio 0.223 0.487 0.183 3,822
Oklahoma 0.085 0.169 0.067 1,525
Oregon 0.307 0.617 0.234 5,388
Pennsylvania 0.152 0.327 0.119 2,239
Rhode Island 0.041 0.076 0.026 552
South Carolina 0.033 0.069 0.026 619
South Dakota 0.025 0.044 0.017 410
Tennessee 0.169 0.371 0.138 2,904
Texas 1.381 3.319 1.244 24,254
Utah 0.058 0.130 0.050 1,209
Vermont 0.001 0.001 0.000 11
Virginia 0.345 0.692 0.238 4,592
Washington 0.305 0.634 0.245 4,725
West Virginia 0.004 0.007 0.003 57
Wisconsin 0.169 0.329 0.129 2,836
Wyoming 0.002 0.004 0.001 31
State Totals 12.231 25.757 9.315 182,138 Interstate Spillovers 9.478 3.465 80,795 U.S. Totals 12.231 35.235 12.780 262,932
Source: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
22 | Economic Impacts of Commercial Real Estate
Appendix A-2 Impacts of Industrial Soft Costs on State Economies, 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.090 0.176 0.069 1,568
Alaska – – – –
Arizona 0.006 0.013 0.005 110
Arkansas 0.021 0.038 0.015 358
California 0.076 0.172 0.066 1,199
Colorado 0.016 0.036 0.014 288
Connecticut 0.031 0.060 0.022 401
Delaware 0.000 0.000 0.000 0
District of Columbia – – – –
Florida 0.039 0.085 0.033 752
Georgia 0.006 0.014 0.005 108
Hawaii 0.000 0.000 0.000 1
Idaho 0.011 0.019 0.008 179
Illinois 0.023 0.054 0.020 382
Indiana 0.016 0.032 0.012 270
Iowa 0.029 0.052 0.020 466
Kansas 0.009 0.017 0.006 137
Kentucky 0.115 0.224 0.081 1,905
Louisiana 1.141 2.210 0.876 18,128
Maine – – – –
Maryland 0.010 0.021 0.008 143
Massachusetts 0.039 0.082 0.030 532
Michigan 0.323 0.675 0.265 5,631
Minnesota 0.038 0.085 0.032 637
Mississippi 0.013 0.023 0.009 210
Missouri 0.033 0.067 0.023 490
Montana – – – –
Nebraska 0.105 0.196 0.077 1,651
Nevada 0.002 0.004 0.002 33
New Hampshire 0.000 0.001 0.000 7
New Jersey 0.142 0.313 0.110 2,096
New Mexico 0.000 0.000 0.000 0
New York 0.065 0.130 0.044 776
North Carolina 0.005 0.010 0.004 87
North Dakota 0.000 0.000 0.000 3
Ohio 0.059 0.129 0.048 1,008
Oklahoma 0.006 0.012 0.005 109
Oregon 0.009 0.018 0.007 154
Pennsylvania 0.095 0.205 0.075 1,403
Rhode Island 0.002 0.004 0.002 32
South Carolina 0.147 0.305 0.116 2,723
South Dakota 0.059 0.103 0.041 971
Tennessee 0.102 0.224 0.083 1,751
Texas 0.371 0.891 0.334 6,508
Utah 0.000 0.001 0.000 6
Vermont 0.005 0.008 0.003 76
Virginia 0.005 0.010 0.004 70
Washington 0.036 0.075 0.029 558
West Virginia 0.007 0.013 0.005 102
Wisconsin 0.018 0.035 0.014 302
Wyoming 0.008 0.013 0.005 116
State Totals 3.333 6.856 2.625 54,436 Interstate Spillovers 2.745 0.858 17,210 U.S. Totals 3.333 9.601 3.482 71,646
Source: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
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Appendix A-3 Impacts of Warehouse Soft Costs on State Economies, 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.002 0.003 0.001 28
Alaska 0.002 0.003 0.001 24
Arizona 0.095 0.206 0.080 1,751
Arkansas 0.036 0.065 0.026 604
California 0.440 0.998 0.381 6,939
Colorado 0.095 0.221 0.084 1,764
Connecticut 0.030 0.059 0.022 392
Delaware 0.001 0.003 0.001 14
District of Columbia 0.003 0.004 0.001 9
Florida 0.317 0.695 0.270 6,122
Georgia 0.098 0.232 0.087 1,765
Hawaii 0.004 0.008 0.003 71
Idaho 0.005 0.009 0.004 86
Illinois 0.232 0.546 0.201 3,873
Indiana 0.083 0.169 0.064 1,441
Iowa 0.019 0.034 0.013 301
Kansas 0.084 0.160 0.056 1,267
Kentucky 0.053 0.103 0.038 881
Louisiana 0.018 0.035 0.014 290
Maine 0.001 0.002 0.001 18
Maryland 0.040 0.084 0.031 584
Massachusetts 0.025 0.052 0.019 336
Michigan 0.034 0.070 0.028 586
Minnesota 0.037 0.083 0.031 622
Mississippi 0.000 0.001 0.000 5
Missouri 0.095 0.196 0.067 1,427
Montana 0.001 0.002 0.001 17
Nebraska 0.009 0.018 0.007 150
Nevada 0.068 0.132 0.051 1,072
New Hampshire 0.001 0.003 0.001 20
New Jersey 0.175 0.385 0.135 2,576
New Mexico 0.002 0.003 0.001 31
New York 0.174 0.349 0.118 2,080
North Carolina 0.055 0.119 0.046 1,026
North Dakota 0.015 0.025 0.010 201
Ohio 0.064 0.140 0.053 1,100
Oklahoma 0.034 0.067 0.027 609
Oregon 0.059 0.119 0.045 1,036
Pennsylvania 0.131 0.282 0.103 1,930
Rhode Island 0.000 0.000 0.000 2
South Carolina 0.019 0.040 0.015 354
South Dakota 0.015 0.026 0.010 243
Tennessee 0.028 0.062 0.023 484
Texas 0.426 1.023 0.383 7,475
Utah 0.029 0.065 0.025 602
Vermont 0.000 0.001 0.000 5
Virginia 0.032 0.064 0.022 423
Washington 0.052 0.109 0.042 810
West Virginia 0.005 0.009 0.003 71
Wisconsin 0.050 0.098 0.039 846
Wyoming 0.004 0.006 0.002 50
State Totals 3.302 7.186 2.685 54,416 Interstate Spillovers 2.325 0.765 16,557 U.S. Totals 3.302 9.511 3.450 70,973
Source: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
24 | Economic Impacts of Commercial Real Estate
Appendix A-4 Impacts of Retail and Entertainment Soft Costs on State Economies, 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.043 0.085 0.033 754
Alaska 0.003 0.006 0.002 46
Arizona 0.108 0.235 0.091 1,995
Arkansas 0.033 0.060 0.024 556
California 0.690 1.563 0.597 10,867
Colorado 0.123 0.286 0.109 2,284
Connecticut 0.029 0.056 0.021 373
Delaware 0.015 0.026 0.008 146
District of Columbia 0.040 0.056 0.008 128
Florida 0.517 1.134 0.441 9,992
Georgia 0.263 0.621 0.232 4,725
Hawaii 0.034 0.067 0.026 577
Idaho 0.020 0.037 0.015 342
Illinois 0.243 0.573 0.210 4,061
Indiana 0.063 0.127 0.048 1,088
Iowa 0.083 0.150 0.058 1,343
Kansas 0.057 0.107 0.038 849
Kentucky 0.069 0.135 0.049 1,152
Louisiana 0.056 0.109 0.043 892
Maine 0.012 0.022 0.009 206
Maryland 0.120 0.249 0.091 1,730
Massachusetts 0.213 0.448 0.166 2,895
Michigan 0.089 0.186 0.073 1,550
Minnesota 0.086 0.191 0.071 1,439
Mississippi 0.025 0.045 0.018 417
Missouri 0.119 0.245 0.084 1,783
Montana 0.020 0.036 0.015 357
Nebraska 0.033 0.062 0.024 521
Nevada 0.081 0.156 0.061 1,269
New Hampshire 0.016 0.031 0.011 228
New Jersey 0.116 0.255 0.090 1,711
New Mexico 0.028 0.051 0.020 484
New York 0.556 1.113 0.378 6,633
North Carolina 0.179 0.385 0.147 3,312
North Dakota 0.008 0.014 0.005 114
Ohio 0.167 0.364 0.137 2,858
Oklahoma 0.070 0.138 0.055 1,250
Oregon 0.071 0.142 0.054 1,239
Pennsylvania 0.257 0.554 0.202 3,795
Rhode Island 0.008 0.016 0.005 112
South Carolina 0.071 0.148 0.056 1,318
South Dakota 0.013 0.023 0.009 216
Tennessee 0.164 0.358 0.133 2,805
Texas 0.718 1.726 0.647 12,610
Utah 0.047 0.105 0.041 980
Vermont 0.004 0.008 0.003 73
Virginia 0.232 0.466 0.160 3,095
Washington 0.089 0.184 0.071 1,372
West Virginia 0.008 0.013 0.005 108
Wisconsin 0.078 0.152 0.060 1,311
Wyoming 0.004 0.007 0.003 62
State Totals 6.193 13.327 4.957 100,019 Interstate Spillovers 4.513 1.514 33,110 U.S. Totals 6.193 17.840 6.471 133,128
Source: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 25
Appendix A-5 Impacts of Soft Costs in Four Categories on State Economies, 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.177 0.344 0.135 3,072
Alaska 0.014 0.025 0.010 194
Arizona 0.337 0.732 0.284 6,213
Arkansas 0.123 0.222 0.088 2,065
California 2.307 5.228 1.998 36,350
Colorado 0.430 0.997 0.381 7,965
Connecticut 0.099 0.191 0.071 1,269
Delaware 0.029 0.052 0.015 290
District of Columbia 0.468 0.652 0.095 1,485
Florida 1.219 2.675 1.039 23,557
Georgia 0.941 2.223 0.832 16,907
Hawaii 0.060 0.119 0.047 1,018
Idaho 0.070 0.126 0.051 1,184
Illinois 0.779 1.835 0.674 13,010
Indiana 0.233 0.470 0.178 4,024
Iowa 0.194 0.352 0.137 3,152
Kansas 0.278 0.527 0.186 4,174
Kentucky 0.278 0.543 0.198 4,626
Louisiana 1.249 2.418 0.959 19,841
Maine 0.029 0.056 0.022 521
Maryland 0.402 0.835 0.305 5,803
Massachusetts 0.754 1.590 0.588 10,277
Michigan 0.831 1.738 0.682 14,494
Minnesota 0.224 0.494 0.184 3,722
Mississippi 0.045 0.080 0.031 742
Missouri 0.402 0.829 0.282 6,029
Montana 0.036 0.065 0.027 640
Nebraska 0.173 0.325 0.127 2,733
Nevada 0.340 0.656 0.255 5,338
New Hampshire 0.021 0.041 0.015 307
New Jersey 0.512 1.125 0.395 7,539
New Mexico 0.053 0.095 0.038 905
New York 4.066 8.138 2.761 48,472
North Carolina 0.653 1.407 0.537 12,111
North Dakota 0.050 0.084 0.032 671
Ohio 0.513 1.120 0.420 8,788
Oklahoma 0.195 0.386 0.153 3,492
Oregon 0.446 0.896 0.340 7,818
Pennsylvania 0.635 1.366 0.500 9,368
Rhode Island 0.052 0.096 0.033 699
South Carolina 0.270 0.562 0.213 5,014
South Dakota 0.112 0.196 0.078 1,840
Tennessee 0.464 1.015 0.377 7,944
Texas 2.895 6.958 2.607 50,847
Utah 0.135 0.301 0.116 2,797
Vermont 0.010 0.018 0.007 165
Virginia 0.614 1.232 0.423 8,180
Washington 0.482 1.002 0.387 7,464
West Virginia 0.025 0.042 0.016 338
Wisconsin 0.316 0.615 0.241 5,294
Wyoming 0.019 0.030 0.012 259
State Totals 25.059 53.126 19.581 391,009 Interstate Spillovers 19.062 6.602 147,671 U.S. Totals 25.059 72.188 26.183 538,680
Source: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
26 | Economic Impacts of Commercial Real Estate
Appendix B: Site Development Impacts by States
Appendix B-1 Impacts of Site Development on State Economies (Office), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.035 0.074 0.024 591
Alaska 0.007 0.013 0.004 89
Arizona 0.107 0.218 0.073 1,753
Arkansas 0.027 0.054 0.017 432
California 0.918 1.950 0.645 13,349
Colorado 0.163 0.353 0.118 2,739
Connecticut 0.007 0.012 0.004 78
Delaware 0.011 0.019 0.005 115
District of Columbia 0.354 0.397 0.030 550
Florida 0.289 0.592 0.199 5,009
Georgia 0.478 1.097 0.359 8,668
Hawaii 0.018 0.033 0.012 247
Idaho 0.029 0.052 0.018 443
Illinois 0.234 0.538 0.169 3,562
Indiana 0.059 0.130 0.041 949
Iowa 0.053 0.103 0.033 772
Kansas 0.107 0.212 0.063 1,483
Kentucky 0.034 0.073 0.022 551
Louisiana 0.028 0.055 0.019 404
Maine 0.014 0.026 0.009 222
Maryland 0.193 0.362 0.115 2,366
Massachusetts 0.399 0.756 0.238 4,679
Michigan 0.322 0.684 0.227 5,479
Minnesota 0.051 0.112 0.036 787
Mississippi 0.005 0.011 0.004 88
Missouri 0.130 0.277 0.084 1,999
Montana 0.013 0.023 0.008 200
Nebraska 0.022 0.041 0.013 303
Nevada 0.157 0.290 0.097 2,101
New Hampshire 0.003 0.006 0.002 39
New Jersey 0.066 0.134 0.041 850
New Mexico 0.019 0.033 0.011 280
New York 2.727 4.987 1.551 30,991
North Carolina 0.346 0.757 0.245 6,138
North Dakota 0.022 0.039 0.012 251
Ohio 0.186 0.426 0.135 3,054
Oklahoma 0.071 0.146 0.049 1,112
Oregon 0.256 0.516 0.163 3,845
Pennsylvania 0.127 0.285 0.089 1,870
Rhode Island 0.034 0.060 0.018 376
South Carolina 0.028 0.061 0.019 496
South Dakota 0.021 0.039 0.013 321
Tennessee 0.141 0.319 0.100 2,221
Texas 1.152 2.762 0.905 19,190
Utah 0.049 0.108 0.035 842
Vermont 0.001 0.001 0.000 8
Virginia 0.288 0.561 0.175 4,060
Washington 0.254 0.527 0.172 3,573
West Virginia 0.003 0.006 0.002 45
Wisconsin 0.141 0.291 0.097 2,258
Wyoming 0.002 0.003 0.001 22
State Totals 10.200 20.627 6.523 141,851 Interstate Spillovers 9.055 2.871 67,566 U.S. Totals 10.200 29.682 9.393 209,417
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 27
Appendix B: Site Development Impacts by States
Appendix B-2 Impacts of Site Development on State Economies (Industrial), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.069 0.148 0.048 1,178
Alaska 0.000 0.000 0.000 –
Arizona 0.005 0.009 0.003 75
Arkansas 0.016 0.033 0.010 260
California 0.058 0.124 0.041 847
Colorado 0.012 0.026 0.009 199
Connecticut 0.024 0.044 0.014 278
Delaware 0.000 0.000 0.000 0
District of Columbia 0.000 0.000 0.000 –
Florida 0.030 0.061 0.021 517
Georgia 0.005 0.011 0.003 83
Hawaii 0.000 0.000 0.000 0
Idaho 0.008 0.015 0.005 126
Illinois 0.017 0.040 0.013 266
Indiana 0.012 0.026 0.008 192
Iowa 0.022 0.042 0.014 316
Kansas 0.007 0.014 0.004 97
Kentucky 0.088 0.185 0.057 1,401
Louisiana 0.874 1.735 0.584 12,654
Maine 0.000 0.000 0.000 –
Maryland 0.008 0.014 0.004 93
Massachusetts 0.030 0.057 0.018 351
Michigan 0.247 0.526 0.175 4,212
Minnesota 0.029 0.064 0.020 449
Mississippi 0.010 0.019 0.006 155
Missouri 0.025 0.054 0.016 386
Montana 0.000 0.000 0.000 –
Nebraska 0.080 0.151 0.049 1,116
Nevada 0.002 0.003 0.001 21
New Hampshire 0.000 0.001 0.000 4
New Jersey 0.109 0.223 0.069 1,416
New Mexico 0.000 0.000 0.000 0
New York 0.050 0.091 0.028 567
North Carolina 0.004 0.008 0.003 64
North Dakota 0.000 0.000 0.000 2
Ohio 0.045 0.103 0.033 740
Oklahoma 0.005 0.010 0.003 73
Oregon 0.007 0.014 0.004 101
Pennsylvania 0.073 0.164 0.051 1,076
Rhode Island 0.002 0.003 0.001 20
South Carolina 0.112 0.245 0.079 2,003
South Dakota 0.045 0.084 0.028 697
Tennessee 0.078 0.176 0.055 1,230
Texas 0.284 0.681 0.223 4,728
Utah 0.000 0.000 0.000 4
Vermont 0.004 0.007 0.002 52
Virginia 0.004 0.008 0.002 57
Washington 0.028 0.057 0.019 387
West Virginia 0.006 0.010 0.003 73
Wisconsin 0.014 0.028 0.009 221
Wyoming 0.006 0.010 0.003 77
State Totals 3.638 7.720 2.536 55,703 Interstate Spillovers 2.867 0.814 18,991 U.S. Totals 3.638 10.587 3.350 74,693
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
28 | Economic Impacts of Commercial Real Estate
Appendix B-3 Impacts of Site Development on State Economies (Warehouse), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.002 0.004 0.001 30
Alaska 0.002 0.003 0.001 23
Arizona 0.104 0.213 0.072 1,716
Arkansas 0.039 0.079 0.025 629
California 0.484 1.028 0.340 7,036
Colorado 0.105 0.226 0.075 1,754
Connecticut 0.034 0.062 0.020 390
Delaware 0.002 0.003 0.001 16
District of Columbia 0.003 0.004 0.000 5
Florida 0.348 0.714 0.240 6,038
Georgia 0.108 0.248 0.081 1,955
Hawaii 0.005 0.008 0.003 62
Idaho 0.006 0.010 0.003 87
Illinois 0.255 0.585 0.184 3,871
Indiana 0.092 0.202 0.063 1,472
Iowa 0.020 0.039 0.013 293
Kansas 0.093 0.184 0.055 1,289
Kentucky 0.058 0.123 0.038 929
Louisiana 0.020 0.040 0.013 291
Maine 0.001 0.002 0.001 18
Maryland 0.044 0.083 0.026 544
Massachusetts 0.027 0.051 0.016 318
Michigan 0.037 0.079 0.026 629
Minnesota 0.041 0.090 0.029 629
Mississippi 0.000 0.001 0.000 6
Missouri 0.105 0.224 0.068 1,614
Montana 0.001 0.002 0.001 17
Nebraska 0.010 0.020 0.006 145
Nevada 0.075 0.138 0.046 1,001
New Hampshire 0.002 0.003 0.001 19
New Jersey 0.192 0.394 0.122 2,497
New Mexico 0.002 0.003 0.001 29
New York 0.192 0.351 0.109 2,178
North Carolina 0.061 0.133 0.043 1,079
North Dakota 0.016 0.029 0.009 188
Ohio 0.071 0.162 0.051 1,158
Oklahoma 0.037 0.077 0.026 585
Oregon 0.065 0.131 0.041 974
Pennsylvania 0.144 0.323 0.101 2,124
Rhode Island 0.000 0.000 0.000 2
South Carolina 0.021 0.046 0.015 374
South Dakota 0.016 0.030 0.010 250
Tennessee 0.031 0.070 0.022 488
Texas 0.468 1.122 0.368 7,792
Utah 0.032 0.071 0.023 553
Vermont 0.000 0.001 0.000 5
Virginia 0.035 0.068 0.021 493
Washington 0.057 0.119 0.039 807
West Virginia 0.006 0.010 0.003 72
Wisconsin 0.055 0.115 0.038 888
Wyoming 0.004 0.007 0.002 48
State Totals 3.628 7.726 2.494 55,413 Interstate Spillovers 2.830 0.847 19,063 U.S. Totals 3.628 10.556 3.341 74,476
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 29
Appendix B-4 Impacts of Site Development on State Economies (Retail and Entertainment), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.035 0.076 0.025 602
Alaska 0.003 0.005 0.002 33
Arizona 0.088 0.180 0.061 1,449
Arkansas 0.027 0.054 0.017 429
California 0.561 1.193 0.395 8,165
Colorado 0.100 0.217 0.072 1,683
Connecticut 0.024 0.043 0.014 275
Delaware 0.012 0.021 0.006 126
District of Columbia 0.033 0.037 0.003 51
Florida 0.421 0.863 0.291 7,302
Georgia 0.214 0.491 0.161 3,878
Hawaii 0.028 0.051 0.018 376
Idaho 0.017 0.030 0.010 257
Illinois 0.198 0.455 0.143 3,007
Indiana 0.051 0.113 0.035 823
Iowa 0.067 0.130 0.042 971
Kansas 0.046 0.091 0.027 640
Kentucky 0.056 0.119 0.036 900
Louisiana 0.046 0.091 0.031 662
Maine 0.009 0.018 0.006 150
Maryland 0.098 0.183 0.058 1,195
Massachusetts 0.173 0.328 0.103 2,030
Michigan 0.072 0.154 0.051 1,233
Minnesota 0.070 0.154 0.049 1,079
Mississippi 0.020 0.040 0.013 326
Missouri 0.097 0.207 0.063 1,494
Montana 0.017 0.031 0.010 263
Nebraska 0.027 0.051 0.017 374
Nevada 0.066 0.121 0.040 878
New Hampshire 0.013 0.025 0.008 162
New Jersey 0.095 0.194 0.060 1,229
New Mexico 0.023 0.040 0.014 339
New York 0.453 0.828 0.258 5,148
North Carolina 0.145 0.318 0.103 2,582
North Dakota 0.007 0.012 0.004 79
Ohio 0.136 0.311 0.098 2,229
Oklahoma 0.057 0.117 0.039 890
Oregon 0.058 0.116 0.037 863
Pennsylvania 0.209 0.471 0.147 3,094
Rhode Island 0.007 0.012 0.003 75
South Carolina 0.058 0.126 0.040 1,030
South Dakota 0.011 0.020 0.007 165
Tennessee 0.133 0.300 0.094 2,094
Texas 0.585 1.402 0.460 9,741
Utah 0.038 0.085 0.028 666
Vermont 0.004 0.007 0.002 53
Virginia 0.189 0.369 0.115 2,671
Washington 0.072 0.149 0.049 1,013
West Virginia 0.006 0.012 0.004 82
Wisconsin 0.064 0.132 0.044 1,019
Wyoming 0.004 0.006 0.002 43
State Totals 5.042 10.597 3.412 75,916 Interstate Spillovers 4.075 1.231 27,597 U.S. Totals 5.042 14.672 4.643 103,513
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
30 | Economic Impacts of Commercial Real Estate
Appendix B-5 Impacts of Site Development on State Economies (in Four Categories), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.141 0.302 0.099 2,400
Alaska 0.012 0.020 0.007 145
Arizona 0.304 0.620 0.209 4,994
Arkansas 0.110 0.220 0.071 1,750
California 2.021 4.294 1.421 29,397
Colorado 0.380 0.821 0.274 6,375
Connecticut 0.088 0.161 0.052 1,021
Delaware 0.024 0.043 0.012 257
District of Columbia 0.390 0.438 0.033 606
Florida 1.088 2.231 0.751 18,865
Georgia 0.805 1.846 0.604 14,585
Hawaii 0.051 0.093 0.032 685
Idaho 0.059 0.108 0.036 913
Illinois 0.704 1.618 0.509 10,706
Indiana 0.214 0.471 0.148 3,436
Iowa 0.163 0.315 0.101 2,352
Kansas 0.253 0.501 0.149 3,509
Kentucky 0.237 0.499 0.153 3,780
Louisiana 0.967 1.921 0.647 14,010
Maine 0.025 0.047 0.016 390
Maryland 0.343 0.642 0.203 4,198
Massachusetts 0.629 1.191 0.376 7,378
Michigan 0.678 1.442 0.479 11,553
Minnesota 0.192 0.419 0.134 2,944
Mississippi 0.036 0.071 0.023 574
Missouri 0.356 0.762 0.232 5,494
Montana 0.030 0.056 0.019 481
Nebraska 0.139 0.262 0.086 1,939
Nevada 0.300 0.552 0.184 4,001
New Hampshire 0.018 0.035 0.011 224
New Jersey 0.462 0.945 0.292 5,992
New Mexico 0.044 0.077 0.026 648
New York 3.422 6.257 1.946 38,883
North Carolina 0.556 1.216 0.393 9,863
North Dakota 0.045 0.080 0.025 519
Ohio 0.437 1.002 0.317 7,181
Oklahoma 0.170 0.350 0.117 2,660
Oregon 0.386 0.777 0.245 5,784
Pennsylvania 0.552 1.243 0.387 8,164
Rhode Island 0.043 0.076 0.022 473
South Carolina 0.219 0.477 0.153 3,903
South Dakota 0.093 0.173 0.057 1,432
Tennessee 0.384 0.865 0.271 6,033
Texas 2.488 5.967 1.955 41,451
Utah 0.119 0.265 0.087 2,064
Vermont 0.008 0.015 0.005 119
Virginia 0.516 1.006 0.314 7,280
Washington 0.411 0.852 0.278 5,780
West Virginia 0.021 0.038 0.012 272
Wisconsin 0.274 0.566 0.188 4,386
Wyoming 0.016 0.026 0.009 190
State Totals 21.422 44.274 14.169 312,044 Interstate Spillovers 18.063 5.558 127,758 U.S. Totals 21.422 62.337 19.727 439,801
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 31
Appendix C: Hard Costs Impacts by States Appendix C-1
Impacts of Construction (Hard Costs) on State Economies (Office), 2016
State Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.2663 0.0872 2,120
Alaska 0.0451 0.0159 321
Arizona 0.7817 0.2636 6,293
Arkansas 0.1948 0.0627 1,552
California 6.9996 2.3166 47,915
Colorado 1.2653 0.4228 9,830
Connecticut 0.0441 0.0142 279
Delaware 0.0685 0.0187 413
District of Columbia 1.4263 0.1082 1,975
Florida 2.1259 0.7156 17,978
Georgia 3.9390 1.2885 31,114
Hawaii 0.1195 0.0413 885
Idaho 0.1883 0.0631 1,592
Illinois 1.9325 0.6083 12,784
Indiana 0.4668 0.1469 3,407
Iowa 0.3708 0.1191 2,769
Kansas 0.7606 0.2253 5,323
Kentucky 0.2611 0.0798 1,977
Louisiana 0.1987 0.0669 1,450
Maine 0.0950 0.0318 796
Maryland 1.2991 0.4112 8,493
Massachusetts 2.7123 0.8561 16,796
Michigan 2.4554 0.8153 19,667
Minnesota 0.4019 0.1285 2,824
Mississippi 0.0390 0.0127 315
Missouri 0.9950 0.3032 7,177
Montana 0.0835 0.0284 719
Nebraska 0.1470 0.0480 1,087
Nevada 1.0414 0.3466 7,541
New Hampshire 0.0216 0.0066 140
New Jersey 0.4815 0.1486 3,053
New Mexico 0.1194 0.0404 1,004
New York 17.8994 5.5680 111,238
North Carolina 2.7169 0.8781 22,032
North Dakota 0.1392 0.0440 900
Ohio 1.5296 0.4834 10,961
Oklahoma 0.5250 0.1750 3,990
Oregon 1.8530 0.5841 13,802
Pennsylvania 1.0222 0.3185 6,712
Rhode Island 0.2157 0.0631 1,350
South Carolina 0.2172 0.0698 1,779
South Dakota 0.1387 0.0461 1,152
Tennessee 1.1438 0.3584 7,973
Texas 9.9154 3.2495 68,881
Utah 0.3873 0.1274 3,020
Vermont 0.0037 0.0012 30
Virginia 2.0135 0.6293 14,572
Washington 1.8912 0.6164 12,826
West Virginia 0.0225 0.0069 160
Wisconsin 1.0461 0.3471 8,106
Wyoming 0.0109 0.0036 80
State Totals 74.0384 23.4118 509,152 Interstate Spillovers 32.5022 10.3041 242,519 U.S. Totals 106.5406 33.7159 751,671
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
32 | Economic Impacts of Commercial Real Estate
Appendix C-2 Impacts of Construction (Hard Costs) on State Economies (Industrial), 2016
State Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.9012 0.2949 7,172
Alaska – – –
Arizona 0.0570 0.0192 459
Arkansas 0.1984 0.0639 1,581
California 0.7537 0.2495 5,160
Colorado 0.1564 0.0522 1,215
Connecticut 0.2676 0.0859 1,694
Delaware 0.0004 0.0001 2
District of Columbia – – –
Florida 0.3721 0.1252 3,146
Georgia 0.0640 0.0209 506
Hawaii 0.0004 0.0001 3
Idaho 0.0908 0.0304 768
Illinois 0.2448 0.0770 1,619
Indiana 0.1603 0.0504 1,169
Iowa 0.2580 0.0829 1,927
Kansas 0.0844 0.0250 591
Kentucky 1.1267 0.3443 8,530
Louisiana 10.5650 3.5580 77,069
Maine – – –
Maryland 0.0865 0.0274 566
Massachusetts 0.3449 0.1089 2,136
Michigan 3.2031 1.0635 25,655
Minnesota 0.3895 0.1245 2,737
Mississippi 0.1165 0.0379 941
Missouri 0.3260 0.0993 2,351
Montana – – –
Nebraska 0.9193 0.3000 6,800
Nevada 0.0179 0.0060 130
New Hampshire 0.0041 0.0013 27
New Jersey 1.3602 0.4197 8,623
New Mexico 0.0002 0.0001 2
New York 0.5554 0.1728 3,451
North Carolina 0.0480 0.0155 389
North Dakota 0.0016 0.0005 10
Ohio 0.6289 0.1987 4,507
Oklahoma 0.0584 0.0195 444
Oregon 0.0827 0.0261 616
Pennsylvania 0.9980 0.3110 6,553
Rhode Island 0.0198 0.0058 124
South Carolina 1.4895 0.4788 12,201
South Dakota 0.5110 0.1697 4,244
Tennessee 1.0747 0.3367 7,491
Texas 4.1455 1.3586 28,798
Utah 0.0030 0.0010 23
Vermont 0.0396 0.0128 318
Virginia 0.0475 0.0149 344
Washington 0.3478 0.1134 2,359
West Virginia 0.0622 0.0191 444
Wisconsin 0.1734 0.0575 1,344
Wyoming 0.0639 0.0212 469
State Totals 32.4203 10.6023 236,706 Interstate Spillovers 12.8113 3.7117 82,415 U.S. Totals 45.2316 14.3140 319,121
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 33
Appendix C-3 Impacts of Construction (Hard Costs) on State Economies
(Warehouse), 2016
State Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.0141 0.0046 112
Alaska 0.0122 0.0043 87
Arizona 0.7972 0.2688 6,417
Arkansas 0.2951 0.0951 2,352
California 3.8436 1.2721 26,311
Colorado 0.8444 0.2821 6,560
Connecticut 0.2306 0.0741 1,459
Delaware 0.0102 0.0028 61
District of Columbia 0.0132 0.0010 18
Florida 2.6698 0.8987 22,578
Georgia 0.9255 0.3028 7,311
Hawaii 0.0313 0.0108 232
Idaho 0.0384 0.0129 325
Illinois 2.1885 0.6888 14,477
Indiana 0.7542 0.2373 5,504
Iowa 0.1469 0.0472 1,098
Kansas 0.6889 0.2040 4,821
Kentucky 0.4589 0.1402 3,474
Louisiana 0.1491 0.0502 1,087
Maine 0.0080 0.0027 67
Maryland 0.3112 0.0985 2,035
Massachusetts 0.1920 0.0606 1,189
Michigan 0.2937 0.0975 2,352
Minnesota 0.3349 0.1070 2,353
Mississippi 0.0026 0.0008 21
Missouri 0.8370 0.2551 6,037
Montana 0.0075 0.0025 64
Nebraska 0.0734 0.0240 543
Nevada 0.5169 0.1721 3,743
New Hampshire 0.0109 0.0033 70
New Jersey 1.4730 0.4545 9,338
New Mexico 0.0129 0.0044 109
New York 1.3107 0.4077 8,146
North Carolina 0.4978 0.1609 4,036
North Dakota 0.1088 0.0344 704
Ohio 0.6044 0.1910 4,331
Oklahoma 0.2881 0.0960 2,189
Oregon 0.4891 0.1542 3,643
Pennsylvania 1.2095 0.3769 7,942
Rhode Island 0.0012 0.0004 8
South Carolina 0.1708 0.0549 1,399
South Dakota 0.1127 0.0374 936
Tennessee 0.2617 0.0820 1,824
Texas 4.1943 1.3746 29,137
Utah 0.2650 0.0871 2,067
Vermont 0.0023 0.0008 19
Virginia 0.2547 0.0796 1,844
Washington 0.4450 0.1450 3,018
West Virginia 0.0380 0.0117 271
Wisconsin 0.4285 0.1422 3,320
Wyoming 0.0244 0.0081 179
State Totals 28.8930 9.3257 207,217 Interstate Spillovers 10.5815 3.1664 71,285 U.S. Totals 39.4744 12.4921 278,502
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
34 | Economic Impacts of Commercial Real Estate
Appendix C-4 Impacts of Construction (Hard Costs) on State Economies
(Retail and Entertainment), 2016
State Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.2586 0.0846 2,058
Alaska 0.0156 0.0055 111
Arizona 0.6153 0.2075 4,954
Arkansas 0.1841 0.0593 1,467
California 4.0773 1.3494 27,911
Colorado 0.7405 0.2474 5,753
Connecticut 0.1486 0.0477 940
Delaware 0.0712 0.0194 429
District of Columbia 0.1256 0.0095 174
Florida 2.9516 0.9936 24,961
Georgia 1.6784 0.5490 13,258
Hawaii 0.1735 0.0600 1,285
Idaho 0.1038 0.0348 877
Illinois 1.5541 0.4891 10,280
Indiana 0.3856 0.1213 2,814
Iowa 0.4443 0.1428 3,319
Kansas 0.3126 0.0926 2,187
Kentucky 0.4065 0.1242 3,077
Louisiana 0.3101 0.1044 2,262
Maine 0.0613 0.0205 514
Maryland 0.6247 0.1978 4,084
Massachusetts 1.1208 0.3537 6,940
Michigan 0.5262 0.1747 4,214
Minnesota 0.5249 0.1678 3,688
Mississippi 0.1378 0.0448 1,113
Missouri 0.7084 0.2159 5,109
Montana 0.1045 0.0355 900
Nebraska 0.1730 0.0565 1,280
Nevada 0.4143 0.1379 3,000
New Hampshire 0.0855 0.0261 554
New Jersey 0.6626 0.2044 4,200
New Mexico 0.1380 0.0467 1,160
New York 2.8315 0.8808 17,597
North Carolina 1.0884 0.3518 8,826
North Dakota 0.0415 0.0131 269
Ohio 1.0635 0.3361 7,621
Oklahoma 0.4001 0.1333 3,041
Oregon 0.3963 0.1249 2,952
Pennsylvania 1.6107 0.5019 10,576
Rhode Island 0.0408 0.0119 256
South Carolina 0.4300 0.1382 3,522
South Dakota 0.0677 0.0225 562
Tennessee 1.0269 0.3218 7,158
Texas 4.7932 1.5708 33,298
Utah 0.2919 0.0960 2,276
Vermont 0.0227 0.0073 182
Virginia 1.2615 0.3943 9,130
Washington 0.5105 0.1664 3,462
West Virginia 0.0394 0.0121 281
Wisconsin 0.4496 0.1492 3,484
Wyoming 0.0202 0.0067 148
State Totals 36.2254 11.6637 259,514 Interstate Spillovers 13.9293 4.2083 94,340 U.S. Totals 50.1547 15.8720 353,854
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 35
Appendix C-5 Impacts of Construction (Hard Costs) on State Economies
(in Four Categories), 2016
State Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 1.4402 0.4713 11,462
Alaska 0.0729 0.0257 519
Arizona 2.2512 0.7592 18,123
Arkansas 0.8724 0.2810 6,952
California 15.6742 5.1876 107,296
Colorado 3.0065 1.0046 23,358
Connecticut 0.6908 0.2219 4,372
Delaware 0.1503 0.0410 906
District of Columbia 1.5651 0.1188 2,168
Florida 8.1193 2.7332 68,662
Georgia 6.6069 2.1612 52,188
Hawaii 0.3248 0.1123 2,405
Idaho 0.4213 0.1412 3,561
Illinois 5.9199 1.8633 39,160
Indiana 1.7670 0.5560 12,894
Iowa 1.2200 0.3921 9,113
Kansas 1.8464 0.5469 12,921
Kentucky 2.2532 0.6886 17,058
Louisiana 11.2228 3.7796 81,868
Maine 0.1643 0.0550 1,377
Maryland 2.3216 0.7349 15,178
Massachusetts 4.3700 1.3792 27,061
Michigan 6.4784 2.1509 51,888
Minnesota 1.6513 0.5278 11,602
Mississippi 0.2958 0.0961 2,390
Missouri 2.8664 0.8735 20,673
Montana 0.1955 0.0664 1,684
Nebraska 1.3127 0.4284 9,710
Nevada 1.9905 0.6626 14,414
New Hampshire 0.1220 0.0373 791
New Jersey 3.9772 1.2272 25,213
New Mexico 0.2706 0.0915 2,275
New York 22.5970 7.0293 140,431
North Carolina 4.3510 1.4063 35,283
North Dakota 0.2910 0.0920 1,883
Ohio 3.8264 1.2091 27,420
Oklahoma 1.2716 0.4238 9,664
Oregon 2.8211 0.8893 21,014
Pennsylvania 4.8404 1.5083 31,784
Rhode Island 0.2775 0.0811 1,737
South Carolina 2.3075 0.7417 18,901
South Dakota 0.8302 0.2757 6,894
Tennessee 3.5071 1.0989 24,446
Texas 23.0484 7.5534 160,114
Utah 0.9472 0.3115 7,387
Vermont 0.0683 0.0221 549
Virginia 3.5774 1.1180 25,890
Washington 3.1946 1.0413 21,665
West Virginia 0.1620 0.0498 1,156
Wisconsin 2.0977 0.6959 16,254
Wyoming 0.1193 0.0397 876
State Totals 171.5771 55.0035 1,212,590 Interstate Spillovers 69.8242 21.3905 490,558 U.S. Totals 241.4013 76.3940 1,703,149
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
36 | Economic Impacts of Commercial Real Estate
Appendix D: Tenant Improvement Impacts by State
Appendix D-1 Impacts of Tenant Improvements on State Economies (Office), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.052 0.112 0.037 889
Alaska 0.011 0.019 0.007 135
Arizona 0.160 0.328 0.111 2,638
Arkansas 0.041 0.082 0.026 651
California 1.381 2.934 0.971 20,087
Colorado 0.246 0.530 0.177 4,121
Connecticut 0.010 0.018 0.006 117
Delaware 0.016 0.029 0.008 173
District of Columbia 0.533 0.598 0.045 828
Florida 0.435 0.891 0.300 7,537
Georgia 0.720 1.651 0.540 13,044
Hawaii 0.027 0.050 0.017 371
Idaho 0.043 0.079 0.026 667
Illinois 0.353 0.810 0.255 5,359
Indiana 0.089 0.196 0.062 1,428
Iowa 0.080 0.155 0.050 1,161
Kansas 0.161 0.319 0.094 2,231
Kentucky 0.052 0.109 0.033 829
Louisiana 0.042 0.083 0.028 608
Maine 0.021 0.040 0.013 334
Maryland 0.291 0.545 0.172 3,561
Massachusetts 0.600 1.137 0.359 7,041
Michigan 0.484 1.029 0.342 8,245
Minnesota 0.077 0.168 0.054 1,184
Mississippi 0.008 0.016 0.005 132
Missouri 0.195 0.417 0.127 3,009
Montana 0.019 0.035 0.012 302
Nebraska 0.033 0.062 0.020 456
Nevada 0.237 0.437 0.145 3,161
New Hampshire 0.005 0.009 0.003 59
New Jersey 0.099 0.202 0.062 1,280
New Mexico 0.029 0.050 0.017 421
New York 4.104 7.504 2.334 46,633
North Carolina 0.520 1.139 0.368 9,236
North Dakota 0.033 0.058 0.018 377
Ohio 0.280 0.641 0.203 4,595
Oklahoma 0.107 0.220 0.073 1,673
Oregon 0.386 0.777 0.245 5,786
Pennsylvania 0.190 0.429 0.134 2,814
Rhode Island 0.051 0.090 0.026 566
South Carolina 0.042 0.091 0.029 746
South Dakota 0.031 0.058 0.019 483
Tennessee 0.213 0.480 0.150 3,342
Texas 1.733 4.157 1.362 28,876
Utah 0.073 0.162 0.053 1,266
Vermont 0.001 0.002 0.001 13
Virginia 0.433 0.844 0.264 6,109
Washington 0.383 0.793 0.258 5,377
West Virginia 0.005 0.009 0.003 67
Wisconsin 0.212 0.439 0.145 3,398
Wyoming 0.003 0.005 0.002 33
State Totals 15.349 31.039 9.815 213,449 Interstate Spillovers 13.626 4.320 101,670 U.S. Totals 15.349 44.664 14.134 315,118
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 37
Appendix D-2 Impacts of Tenant Improvements on State Economies (Industrial), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.156 0.335 0.110 2,668
Alaska 0.000 0.000 0.000 –
Arizona 0.010 0.021 0.007 171
Arkansas 0.037 0.074 0.024 588
California 0.132 0.280 0.093 1,919
Colorado 0.027 0.058 0.019 452
Connecticut 0.054 0.100 0.032 630
Delaware 0.000 0.000 0.000 1
District of Columbia 0.000 0.000 0.000 –
Florida 0.067 0.138 0.047 1,170
Georgia 0.010 0.024 0.008 188
Hawaii 0.000 0.000 0.000 1
Idaho 0.018 0.034 0.011 286
Illinois 0.040 0.091 0.029 602
Indiana 0.027 0.060 0.019 435
Iowa 0.050 0.096 0.031 717
Kansas 0.016 0.031 0.009 220
Kentucky 0.199 0.419 0.128 3,173
Louisiana 1.979 3.930 1.323 28,667
Maine 0.000 0.000 0.000 –
Maryland 0.017 0.032 0.010 210
Massachusetts 0.068 0.128 0.040 794
Michigan 0.560 1.191 0.396 9,543
Minnesota 0.066 0.145 0.046 1,018
Mississippi 0.022 0.043 0.014 350
Missouri 0.057 0.121 0.037 874
Montana 0.000 0.000 0.000 –
Nebraska 0.182 0.342 0.112 2,529
Nevada 0.004 0.007 0.002 48
New Hampshire 0.001 0.002 0.000 10
New Jersey 0.247 0.506 0.156 3,207
New Mexico 0.000 0.000 0.000 1
New York 0.113 0.207 0.064 1,284
North Carolina 0.008 0.018 0.006 145
North Dakota 0.000 0.001 0.000 4
Ohio 0.102 0.234 0.074 1,676
Oklahoma 0.011 0.022 0.007 165
Oregon 0.015 0.031 0.010 229
Pennsylvania 0.165 0.371 0.116 2,438
Rhode Island 0.004 0.007 0.002 46
South Carolina 0.255 0.554 0.178 4,538
South Dakota 0.103 0.190 0.063 1,578
Tennessee 0.177 0.400 0.125 2,786
Texas 0.643 1.542 0.505 10,712
Utah 0.001 0.001 0.000 9
Vermont 0.008 0.015 0.005 118
Virginia 0.009 0.018 0.006 128
Washington 0.062 0.129 0.042 877
West Virginia 0.013 0.023 0.007 165
Wisconsin 0.031 0.065 0.021 500
Wyoming 0.015 0.024 0.008 174
State Totals 5.782 12.059 3.944 88,045 Interstate Spillovers 4.765 1.381 30,655 U.S. Totals 5.782 16.824 5.324 118,700
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
38 | Economic Impacts of Commercial Real Estate
Appendix D-3 Impacts of Tenant Improvements on State Economies (Warehouse), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.001 0.003 0.001 24
Alaska 0.002 0.003 0.001 19
Arizona 0.085 0.174 0.059 1,399
Arkansas 0.032 0.064 0.021 513
California 0.394 0.838 0.277 5,735
Colorado 0.085 0.184 0.061 1,430
Connecticut 0.027 0.050 0.016 318
Delaware 0.001 0.002 0.001 13
District of Columbia 0.003 0.003 0.000 4
Florida 0.284 0.582 0.196 4,921
Georgia 0.088 0.202 0.066 1,594
Hawaii 0.004 0.007 0.002 51
Idaho 0.005 0.008 0.003 71
Illinois 0.208 0.477 0.150 3,156
Indiana 0.075 0.164 0.052 1,200
Iowa 0.017 0.032 0.010 239
Kansas 0.076 0.150 0.044 1,051
Kentucky 0.047 0.100 0.031 757
Louisiana 0.016 0.032 0.011 237
Maine 0.001 0.002 0.001 15
Maryland 0.036 0.068 0.021 444
Massachusetts 0.022 0.042 0.013 259
Michigan 0.030 0.064 0.021 513
Minnesota 0.033 0.073 0.023 513
Mississippi 0.000 0.001 0.000 5
Missouri 0.085 0.182 0.056 1,316
Montana 0.001 0.002 0.001 14
Nebraska 0.008 0.016 0.005 118
Nevada 0.061 0.113 0.038 816
New Hampshire 0.001 0.002 0.001 15
New Jersey 0.157 0.321 0.099 2,035
New Mexico 0.002 0.003 0.001 24
New York 0.156 0.286 0.089 1,776
North Carolina 0.050 0.108 0.035 880
North Dakota 0.013 0.024 0.007 153
Ohio 0.057 0.132 0.042 944
Oklahoma 0.031 0.063 0.021 477
Oregon 0.053 0.107 0.034 794
Pennsylvania 0.117 0.264 0.082 1,731
Rhode Island 0.000 0.000 0.000 2
South Carolina 0.017 0.037 0.012 305
South Dakota 0.013 0.025 0.008 204
Tennessee 0.025 0.057 0.018 398
Texas 0.381 0.914 0.300 6,351
Utah 0.026 0.058 0.019 450
Vermont 0.000 0.001 0.000 4
Virginia 0.028 0.056 0.017 402
Washington 0.047 0.097 0.032 658
West Virginia 0.005 0.008 0.003 59
Wisconsin 0.045 0.093 0.031 724
Wyoming 0.003 0.005 0.002 39
State Totals 2.957 6.298 2.033 45,169 Interstate Spillovers 2.307 0.690 15,539 U.S. Totals 2.957 8.605 2.723 60,707
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 39
Appendix D-4 Impacts of Tenant Improvements on State Economies (Retail and Entertainment), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.046 0.098 0.032 778
Alaska 0.003 0.006 0.002 42
Arizona 0.114 0.233 0.078 1,873
Arkansas 0.035 0.070 0.022 555
California 0.726 1.542 0.510 10,556
Colorado 0.130 0.280 0.094 2,176
Connecticut 0.031 0.056 0.018 356
Delaware 0.015 0.027 0.007 162
District of Columbia 0.042 0.047 0.004 66
Florida 0.544 1.116 0.376 9,440
Georgia 0.277 0.635 0.208 5,014
Hawaii 0.036 0.066 0.023 486
Idaho 0.021 0.039 0.013 332
Illinois 0.256 0.588 0.185 3,888
Indiana 0.066 0.146 0.046 1,064
Iowa 0.087 0.168 0.054 1,255
Kansas 0.060 0.118 0.035 827
Kentucky 0.073 0.154 0.047 1,164
Louisiana 0.059 0.117 0.039 855
Maine 0.012 0.023 0.008 194
Maryland 0.126 0.236 0.075 1,545
Massachusetts 0.224 0.424 0.134 2,625
Michigan 0.094 0.199 0.066 1,594
Minnesota 0.091 0.199 0.063 1,395
Mississippi 0.026 0.052 0.017 421
Missouri 0.125 0.268 0.082 1,932
Montana 0.021 0.040 0.013 340
Nebraska 0.035 0.065 0.021 484
Nevada 0.085 0.157 0.052 1,135
New Hampshire 0.017 0.032 0.010 210
New Jersey 0.122 0.251 0.077 1,589
New Mexico 0.030 0.052 0.018 439
New York 0.586 1.071 0.333 6,655
North Carolina 0.188 0.412 0.133 3,338
North Dakota 0.009 0.016 0.005 102
Ohio 0.176 0.402 0.127 2,882
Oklahoma 0.074 0.151 0.050 1,150
Oregon 0.074 0.150 0.047 1,116
Pennsylvania 0.271 0.609 0.190 4,000
Rhode Island 0.009 0.015 0.005 97
South Carolina 0.075 0.163 0.052 1,332
South Dakota 0.014 0.026 0.009 213
Tennessee 0.172 0.388 0.122 2,707
Texas 0.756 1.813 0.594 12,593
Utah 0.050 0.110 0.036 861
Vermont 0.005 0.009 0.003 69
Virginia 0.245 0.477 0.149 3,453
Washington 0.093 0.193 0.063 1,309
West Virginia 0.008 0.015 0.005 106
Wisconsin 0.082 0.170 0.056 1,318
Wyoming 0.005 0.008 0.003 56
State Totals 6.518 13.700 4.411 98,148 Interstate Spillovers 5.268 1.592 35,679 U.S. Totals 6.518 18.968 6.003 133,827
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
40 | Economic Impacts of Commercial Real Estate
Appendix D-5 Impacts of Tenant Improvements on State Economies (in Four Categories), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.255 0.548 0.179 4,359
Alaska 0.016 0.027 0.010 196
Arizona 0.370 0.755 0.255 6,081
Arkansas 0.145 0.289 0.093 2,306
California 2.633 5.595 1.852 38,297
Colorado 0.487 1.053 0.352 8,179
Connecticut 0.122 0.224 0.072 1,421
Delaware 0.033 0.058 0.016 350
District of Columbia 0.578 0.648 0.049 898
Florida 1.330 2.728 0.918 23,069
Georgia 1.095 2.512 0.822 19,839
Hawaii 0.067 0.123 0.042 909
Idaho 0.087 0.160 0.054 1,355
Illinois 0.856 1.966 0.619 13,005
Indiana 0.257 0.566 0.178 4,127
Iowa 0.234 0.451 0.145 3,372
Kansas 0.312 0.619 0.183 4,329
Kentucky 0.371 0.782 0.239 5,923
Louisiana 2.097 4.163 1.402 30,367
Maine 0.034 0.065 0.022 543
Maryland 0.470 0.881 0.279 5,759
Massachusetts 0.914 1.731 0.546 10,720
Michigan 1.167 2.484 0.825 19,894
Minnesota 0.268 0.585 0.187 4,109
Mississippi 0.057 0.112 0.037 908
Missouri 0.462 0.989 0.301 7,131
Montana 0.041 0.076 0.026 656
Nebraska 0.258 0.485 0.158 3,587
Nevada 0.386 0.713 0.237 5,160
New Hampshire 0.023 0.045 0.014 293
New Jersey 0.625 1.279 0.395 8,111
New Mexico 0.060 0.105 0.036 884
New York 4.959 9.067 2.821 56,348
North Carolina 0.766 1.677 0.542 13,599
North Dakota 0.056 0.098 0.031 636
Ohio 0.615 1.409 0.445 10,098
Oklahoma 0.222 0.456 0.152 3,465
Oregon 0.529 1.064 0.335 7,926
Pennsylvania 0.743 1.673 0.521 10,983
Rhode Island 0.065 0.113 0.033 710
South Carolina 0.388 0.845 0.272 6,921
South Dakota 0.162 0.298 0.099 2,478
Tennessee 0.587 1.325 0.415 9,234
Texas 3.513 8.426 2.761 58,532
Utah 0.150 0.332 0.109 2,586
Vermont 0.014 0.025 0.008 204
Virginia 0.715 1.394 0.436 10,092
Washington 0.585 1.212 0.395 8,221
West Virginia 0.031 0.056 0.017 398
Wisconsin 0.371 0.767 0.254 5,939
Wyoming 0.026 0.041 0.014 303
State Totals 30.605 63.096 20.202 444,810 Interstate Spillovers 25.965 7.982 183,542 U.S. Totals 30.605 89.062 28.184 628,352
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 41
Appendix E: Total Impacts by State
Appendix E-1 Total Impacts (Soft Costs, Site Development, Hard Costs and Tenant Improvements) on State Economies (Office), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.252 0.533 0.180 4,321
Alaska 0.054 0.092 0.033 669
Arizona 0.778 1.605 0.555 13,041
Arkansas 0.198 0.389 0.130 3,183
California 6.695 14.379 4.887 98,698
Colorado 1.190 2.602 0.891 20,319
Connecticut 0.049 0.090 0.030 577
Delaware 0.079 0.139 0.039 831
District of Columbia 2.582 3.014 0.270 4,702
Florida 2.107 4.369 1.510 37,214
Georgia 3.488 8.043 2.695 63,136
Hawaii 0.133 0.246 0.087 1,873
Idaho 0.209 0.381 0.132 3,279
Illinois 1.709 3.943 1.276 26,399
Indiana 0.431 0.936 0.304 7,008
Iowa 0.390 0.746 0.248 5,744
Kansas 0.778 1.534 0.468 10,958
Kentucky 0.252 0.524 0.165 4,045
Louisiana 0.203 0.402 0.139 2,992
Maine 0.102 0.193 0.067 1,649
Maryland 1.409 2.687 0.874 17,766
Massachusetts 2.909 5.613 1.826 35,030
Michigan 2.345 4.975 1.700 40,117
Minnesota 0.374 0.818 0.269 5,819
Mississippi 0.040 0.078 0.026 644
Missouri 0.945 2.010 0.624 14,513
Montana 0.092 0.169 0.059 1,487
Nebraska 0.159 0.298 0.101 2,257
Nevada 1.147 2.132 0.730 15,768
New Hampshire 0.023 0.044 0.014 291
New Jersey 0.478 0.990 0.313 6,339
New Mexico 0.138 0.244 0.085 2,094
New York 19.891 36.935 11.674 227,845
North Carolina 2.522 5.506 1.832 45,092
North Dakota 0.160 0.281 0.092 1,882
Ohio 1.356 3.084 1.003 22,432
Oklahoma 0.518 1.060 0.364 8,299
Oregon 1.870 3.763 1.226 28,822
Pennsylvania 0.923 2.062 0.660 13,636
Rhode Island 0.249 0.442 0.133 2,844
South Carolina 0.203 0.438 0.145 3,640
South Dakota 0.153 0.279 0.096 2,366
Tennessee 1.031 2.313 0.746 16,441
Texas 8.399 20.153 6.761 141,201
Utah 0.355 0.788 0.266 6,337
Vermont 0.004 0.008 0.003 62
Virginia 2.098 4.110 1.306 29,334
Washington 1.855 3.845 1.292 26,500
West Virginia 0.025 0.045 0.014 330
Wisconsin 1.028 2.105 0.718 16,598
Wyoming 0.014 0.022 0.008 166
State Totals 74.392 151.462 49.064 1,046,590 Interstate Spillovers 64.661 20.960 492,549 U.S. Totals 74.392 216.123 70.024 1,539,139
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
42 | Economic Impacts of Commercial Real Estate
Appendix E-2 Total Impacts (Soft Costs, Site Development, Hard Costs and Tenant Improvements)
on State Economies (Industrial), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.736 1.560 0.522 12,586
Alaska 0.000 0.000 0.000 –
Arizona 0.049 0.101 0.035 816
Arkansas 0.174 0.343 0.113 2,786
California 0.621 1.330 0.449 9,125
Colorado 0.127 0.276 0.094 2,154
Connecticut 0.255 0.472 0.154 3,002
Delaware 0.000 0.001 0.000 4
District of Columbia 0.000 0.000 0.000 –
Florida 0.318 0.657 0.226 5,585
Georgia 0.049 0.112 0.037 884
Hawaii 0.000 0.001 0.000 5
Idaho 0.087 0.159 0.054 1,358
Illinois 0.186 0.430 0.138 2,869
Indiana 0.128 0.278 0.089 2,066
Iowa 0.234 0.448 0.148 3,426
Kansas 0.074 0.147 0.045 1,044
Kentucky 0.935 1.955 0.610 15,009
Louisiana 9.316 18.439 6.341 136,517
Maine 0.000 0.000 0.000 –
Maryland 0.081 0.154 0.050 1,012
Massachusetts 0.319 0.612 0.198 3,812
Michigan 2.635 5.596 1.898 45,042
Minnesota 0.313 0.683 0.223 4,841
Mississippi 0.103 0.202 0.067 1,656
Missouri 0.267 0.568 0.176 4,101
Montana 0.000 0.000 0.000 –
Nebraska 0.855 1.608 0.537 12,097
Nevada 0.017 0.032 0.011 232
New Hampshire 0.004 0.007 0.002 47
New Jersey 1.163 2.402 0.754 15,342
New Mexico 0.000 0.000 0.000 3
New York 0.532 0.983 0.310 6,078
North Carolina 0.038 0.084 0.028 685
North Dakota 0.002 0.003 0.001 18
Ohio 0.480 1.095 0.353 7,931
Oklahoma 0.050 0.102 0.035 791
Oregon 0.072 0.145 0.047 1,101
Pennsylvania 0.776 1.738 0.553 11,470
Rhode Island 0.020 0.035 0.010 222
South Carolina 1.198 2.593 0.851 21,465
South Dakota 0.484 0.888 0.302 7,489
Tennessee 0.834 1.875 0.600 13,259
Texas 3.025 7.259 2.421 50,746
Utah 0.002 0.005 0.002 42
Vermont 0.038 0.069 0.023 565
Virginia 0.043 0.084 0.026 598
Washington 0.294 0.609 0.203 4,182
West Virginia 0.061 0.108 0.034 784
Wisconsin 0.147 0.301 0.102 2,366
Wyoming 0.069 0.111 0.038 836
State Totals 27.210 56.658 18.911 418,052 Interstate Spillovers 22.425 6.559 143,811 U.S. Totals 27.210 79.084 25.471 561,863
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 43
Appendix E-3 Total Impacts (Soft Costs, Site Development, Hard Costs and Tenant Improvements)
on State Economies (Warehouse), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.011 0.024 0.008 194
Alaska 0.012 0.021 0.008 153
Arizona 0.675 1.390 0.479 11,283
Arkansas 0.255 0.503 0.167 4,098
California 3.128 6.707 2.271 46,021
Colorado 0.676 1.475 0.504 11,509
Connecticut 0.217 0.402 0.132 2,560
Delaware 0.010 0.018 0.005 105
District of Columbia 0.020 0.024 0.002 36
Florida 2.251 4.661 1.605 39,659
Georgia 0.697 1.607 0.537 12,624
Hawaii 0.030 0.055 0.019 415
Idaho 0.036 0.066 0.023 568
Illinois 1.647 3.797 1.224 25,377
Indiana 0.593 1.289 0.416 9,617
Iowa 0.131 0.252 0.083 1,931
Kansas 0.600 1.183 0.360 8,428
Kentucky 0.376 0.785 0.246 6,041
Louisiana 0.130 0.257 0.089 1,906
Maine 0.007 0.014 0.005 117
Maryland 0.287 0.546 0.177 3,606
Massachusetts 0.175 0.337 0.109 2,102
Michigan 0.239 0.506 0.172 4,080
Minnesota 0.265 0.580 0.190 4,117
Mississippi 0.002 0.004 0.001 37
Missouri 0.676 1.440 0.446 10,394
Montana 0.007 0.013 0.004 113
Nebraska 0.067 0.127 0.043 956
Nevada 0.484 0.900 0.307 6,632
New Hampshire 0.010 0.019 0.006 124
New Jersey 1.244 2.572 0.810 16,447
New Mexico 0.013 0.022 0.008 192
New York 1.239 2.296 0.724 14,179
North Carolina 0.393 0.859 0.284 7,022
North Dakota 0.106 0.187 0.061 1,246
Ohio 0.456 1.038 0.336 7,533
Oklahoma 0.242 0.495 0.169 3,861
Oregon 0.420 0.845 0.274 6,447
Pennsylvania 0.929 2.078 0.663 13,727
Rhode Island 0.001 0.002 0.001 13
South Carolina 0.136 0.293 0.097 2,433
South Dakota 0.106 0.193 0.066 1,634
Tennessee 0.201 0.451 0.145 3,193
Texas 3.023 7.253 2.425 50,755
Utah 0.207 0.458 0.154 3,672
Vermont 0.002 0.004 0.001 33
Virginia 0.226 0.442 0.140 3,162
Washington 0.371 0.770 0.257 5,292
West Virginia 0.037 0.065 0.021 473
Wisconsin 0.358 0.735 0.250 5,778
Wyoming 0.026 0.042 0.014 317
State Totals 23.451 50.103 16.537 362,215 Interstate Spillovers 18.043 5.469 122,444 U.S. Totals 23.451 68.146 22.005 484,659
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
44 | Economic Impacts of Commercial Real Estate
Appendix E-4 Total Impacts (Soft Costs, Site Development, Hard Costs and Tenant Improvements)
on State Economies (Retail and Entertainment), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 0.245 0.517 0.174 4.192
Alaska 0.019 0.032 0.012 232
Arizona 0.612 1.263 0.438 10,271
Arkansas 0.187 0.367 0.123 3,007
California 3.896 8.375 2.852 57,498
Colorado 0.696 1.523 0.523 11,895
Connecticut 0.164 0.305 0.101 1,944
Delaware 0.082 0.145 0.040 863
District of Columbia 0.227 0.266 0.024 418
Florida 2.922 6.066 2.101 51,694
Georgia 1.485 3.425 1.150 26,875
Hawaii 0.193 0.357 0.127 2,724
Idaho 0.115 0.210 0.073 1,808
Illinois 1.373 3.169 1.027 21,236
Indiana 0.356 0.772 0.251 5,790
Iowa 0.467 0.892 0.297 6,888
Kansas 0.320 0.629 0.193 4,503
Kentucky 0.391 0.814 0.257 6,293
Louisiana 0.317 0.627 0.218 4,670
Maine 0.066 0.124 0.043 1,064
Maryland 0.677 1.293 0.421 8,554
Massachusetts 1.201 2.321 0.757 14,491
Michigan 0.502 1.065 0.365 8,591
Minnesota 0.488 1.068 0.352 7,600
Mississippi 0.141 0.275 0.092 2,276
Missouri 0.672 1.429 0.444 10,318
Montana 0.115 0.211 0.074 1,861
Nebraska 0.187 0.351 0.118 2,659
Nevada 0.456 0.848 0.291 6,281
New Hampshire 0.090 0.173 0.055 1,153
New Jersey 0.657 1.362 0.431 8,729
New Mexico 0.160 0.281 0.098 2,423
New York 3.144 5.844 1.849 36,032
North Carolina 1.009 2.203 0.735 18,057
North Dakota 0.048 0.084 0.027 563
Ohio 0.942 2.141 0.698 15,591
Oklahoma 0.395 0.807 0.278 6,330
Oregon 0.400 0.804 0.263 6,171
Pennsylvania 1.452 3.244 1.041 21,465
Rhode Island 0.047 0.084 0.025 540
South Carolina 0.401 0.866 0.287 7,203
South Dakota 0.074 0.136 0.047 1,155
Tennessee 0.924 2.074 0.671 14,764
Texas 4.057 9.734 3.271 68,242
Utah 0.267 0.593 0.201 4,783
Vermont 0.025 0.046 0.015 377
Virginia 1.313 2.574 0.819 18,349
Washington 0.500 1.037 0.349 7,156
West Virginia 0.044 0.079 0.025 577
Wisconsin 0.442 0.903 0.309 7,132
Wyoming 0.025 0.041 0.014 309
State Totals 34.988 73.850 24.444 533,596 Interstate Spillovers 27.785 8.545 190,726 U.S. Totals 34.988 101.635 32.989 724,322
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 45
Appendix E-5 Total Impacts (Soft Costs, Site Development, Hard Costs and Tenant Improvements)
on State Economies (in Four Categories), 2016
State Direct Spending
(In Billions of Dollars) Total Output
(In Billions of Dollars) Personal Earnings
(In Billions of Dollars) Jobs Supported
Alabama 1.244 2.634 0.884 21,293
Alaska 0.085 0.146 0.052 1,054
Arizona 2.113 4.359 1.507 35,411
Arkansas 0.813 1.603 0.533 13,074
California 14.340 30.792 10.459 211,341
Colorado 2.689 5.877 2.012 45,877
Connecticut 0.684 1.268 0.417 8,083
Delaware 0.171 0.303 0.084 1,803
District of Columbia 2.829 3.303 0.296 5,157
Florida 7.598 15.752 5.441 134,152
Georgia 5.720 13.188 4.419 103,519
Hawaii 0.356 0.659 0.233 5,018
Idaho 0.447 0.816 0.282 7,014
Illinois 4.916 11.340 3.665 75,881
Indiana 1.507 3.274 1.060 24,481
Iowa 1.222 2.339 0.776 17,990
Kansas 1.772 3.494 1.065 24,934
Kentucky 1.954 4.078 1.278 31,387
Louisiana 9.966 19.724 6.787 146,085
Maine 0.175 0.331 0.115 2,831
Maryland 2.454 4.679 1.522 30,938
Massachusetts 4.603 8.883 2.889 55,435
Michigan 5.721 12.143 4.136 97,830
Minnesota 1.441 3.149 1.033 22,377
Mississippi 0.287 0.559 0.187 4,613
Missouri 2.560 5.446 1.689 39,327
Montana 0.214 0.393 0.138 3,461
Nebraska 1.268 2.385 0.799 17,969
Nevada 2.105 3.911 1.339 28,914
New Hampshire 0.126 0.243 0.077 1,616
New Jersey 3.542 7.327 2.309 46,856
New Mexico 0.311 0.548 0.191 4,713
New York 24.805 46.058 14.557 284,135
North Carolina 3.963 8.651 2.879 70,856
North Dakota 0.316 0.554 0.181 3,709
Ohio 3.235 7.358 2.391 53,488
Oklahoma 1.204 2.464 0.846 19,281
Oregon 2.762 5.557 1.810 42,541
Pennsylvania 4.080 9.123 2.916 60,298
Rhode Island 0.317 0.563 0.170 3,620
South Carolina 1.938 4.191 1.379 34,740
South Dakota 0.817 1.497 0.510 12,644
Tennessee 2.990 6.713 2.162 47,657
Texas 18.504 44.399 14.877 310,944
Utah 0.831 1.845 0.623 14,834
Vermont 0.070 0.127 0.042 1,037
Virginia 3.680 7.210 2.292 51,442
Washington 3.021 6.261 2.101 43,130
West Virginia 0.167 0.298 0.095 2,163
Wisconsin 1.975 4.045 1.379 31,873
Wyoming 0.134 0.216 0.074 1,628
State Totals 160.041 332.073 108.956 2,360,453 Interstate Spillovers 132.915 41.532 949,530 U.S. Totals 160.041 464.988 150.488 3,309,982
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
46 | Economic Impacts of Commercial Real Estate
Appendix F: Operating Impacts by State
Appendix F-1 Impacts of Operations on State Economies (Office), 2016
State Direct Spending
(In Thousands of Dollars) Total Output
(In Thousands of Dollars) Personal Earnings
(In Thousands of Dollars) Jobs Supported
Alabama 5,394 10,033 3,126 94
Alaska 752 1,254 398 10
Arizona 12,331 23,537 7,515 208
Arkansas 4,515 7,952 2,443 74
California 101,419 205,643 64,242 1,526
Colorado 19,721 40,848 12,844 342
Connecticut 164 285 86 2
Delaware 2,037 3,405 862 23
District of Columbia 28,797 35,134 3,464 87
Florida 31,196 59,748 19,122 553
Georgia 42,177 87,666 27,256 732
Hawaii 667 1,166 372 10
Idaho 2,929 4,867 1,545 48
Illinois 27,695 58,633 17,692 433
Indiana 7,915 15,250 4,596 128
Iowa 5,934 10,129 3,088 90
Kansas 12,695 23,090 6,459 179
Kentucky 8,450 15,899 4,617 136
Louisiana 3,673 6,850 2,146 60
Maine 1,406 2,435 777 23
Maryland 28,359 51,057 15,254 376
Massachusetts 21,513 39,062 11,729 275
Michigan 16,772 31,936 10,106 274
Minnesota 6,512 12,966 3,953 103
Mississippi 758 1,341 410 13
Missouri 10,183 19,414 5,546 157
Montana 1,238 2,126 675 21
Nebraska 2,267 3,880 1,197 35
Nevada 12,626 21,633 6,794 186
New Hampshire 258 447 129 3
New Jersey 3,957 7,674 2,230 54
New Mexico 3,034 5,175 1,618 49
New York 70,470 124,298 35,368 844
North Carolina 43,031 83,646 25,954 760
North Dakota 3,603 6,027 1,770 48
Ohio 23,515 47,847 14,513 374
Oklahoma 12,777 24,656 7,697 215
Oregon 24,684 44,730 13,520 383
Pennsylvania 8,227 16,621 4,944 120
Rhode Island 340 568 157 4
South Carolina 6,874 13,096 3,983 121
South Dakota 3,082 5,041 1,573 48
Tennessee 20,788 41,527 12,509 328
Texas 136,252 302,415 93,384 2,386
Utah 7,574 15,617 4,872 141
Vermont 19 32 10 0
Virginia 38,304 69,214 20,034 515
Washington 25,361 47,653 14,826 376
West Virginia 297 495 144 4
Wisconsin 19,740 35,995 11,327 320
Wyoming 268 416 128 4
State Totals 872,546 1,690,432 509,007 13,294 Interstate Spillovers 611,162 150,682 3,819 U.S. Totals 872,546 2,301,594 659,688 17,113
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 47
Appendix F-2 Impacts of Operations on State Economies (Industrial), 2016
State Direct Spending
(In Thousands of Dollars) Total Output
(In Thousands of Dollars) Personal Earnings
(In Thousands of Dollars) Jobs Supported
Alabama 2,566 4,772 1,487 45
Alaska – – – 0
Arizona 255 487 155 4
Arkansas 934 1,644 505 15
California 3,989 8,089 2,527 60
Colorado 1,349 2,794 878 23
Connecticut 1,241 2,155 649 15
Delaware 6 9 2 0
District of Columbia – – – 0
Florida 1,217 2,330 746 22
Georgia 435 904 281 8
Hawaii – – – 0
Idaho 480 797 253 8
Illinois 1,232 2,608 787 19
Indiana 611 1,177 355 10
Iowa 1,749 2,986 910 27
Kansas 723 1,315 368 10
Kentucky 3,710 6,981 2,027 60
Louisiana 72 134 42 1
Maine – – – 0
Maryland 296 534 159 4
Massachusetts 1,102 2,000 601 14
Michigan 3,257 6,201 1,962 53
Minnesota 2,367 4,713 1,437 37
Mississippi 341 603 184 6
Missouri 1,964 3,744 1,070 30
Montana – – – 0
Nebraska 3,559 6,093 1,880 55
Nevada 101 173 54 1
New Hampshire 19 32 9 0
New Jersey 1,630 3,161 919 22
New Mexico – – – 0
New York 2,488 4,389 1,249 30
North Carolina 183 357 111 3
North Dakota – – – 0
Ohio 3,447 7,014 2,127 55
Oklahoma 319 616 192 5
Oregon 613 1,110 336 9
Pennsylvania 2,756 5,568 1,656 40
Rhode Island 80 133 37 1
South Carolina 5,642 10,750 3,270 99
South Dakota 439 719 224 7
Tennessee 4,963 9,914 2,986 78
Texas 6,338 14,068 4,344 111
Utah – – – 0
Vermont 188 310 94 3
Virginia 151 273 79 2
Washington 2,439 4,582 1,426 36
West Virginia 627 1,045 304 8
Wisconsin 1,165 2,125 669 19
Wyoming 379 588 181 5
State Totals 67,421 129,999 39,535 1,063 Interstate Spillovers 47,844 11,439 259 U.S. Totals 67,421 177,844 50,974 1,322
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
48 | Economic Impacts of Commercial Real Estate
Appendix F-3 Impacts of Operations on State Economies (Warehouse), 2016
State Direct Spending
(In Thousands of Dollars) Total Output
(In Thousands of Dollars) Personal Earnings
(In Thousands of Dollars) Jobs Supported
Alabama 7 14 4 0
Alaska 26 43 14 0
Arizona 5,561 10,615 3,389 94
Arkansas 1,221 2,151 661 20
California 16,490 33,436 10,445 248
Colorado 3,983 8,251 2,594 69
Connecticut 1,263 2,194 661 16
Delaware 6 11 3 0
District of Columbia 15 19 2 0
Florida 13,888 26,599 8,513 246
Georgia 5,020 10,434 3,244 87
Hawaii 88 155 49 1
Idaho 278 462 147 5
Illinois 13,549 28,685 8,656 212
Indiana 5,930 11,426 3,444 96
Iowa 1,037 1,770 540 16
Kansas 5,991 10,897 3,048 84
Kentucky 3,202 6,024 1,749 51
Louisiana 595 1,110 348 10
Maine 48 84 27 1
Maryland 1,560 2,809 839 21
Massachusetts 1,063 1,931 580 14
Michigan 1,083 2,062 653 18
Minnesota 1,571 3,127 953 25
Mississippi 14 26 8 0
Missouri 3,886 7,409 2,117 60
Montana 25 43 14 0
Nebraska 373 639 197 6
Nevada 4,317 7,398 2,323 64
New Hampshire 72 125 36 1
New Jersey 5,748 11,147 3,240 79
New Mexico 106 181 57 2
New York 4,291 7,569 2,154 51
North Carolina 2,475 4,811 1,493 44
North Dakota 665 1,112 327 9
Ohio 3,430 6,979 2,117 54
Oklahoma 2,308 4,453 1,390 39
Oregon 3,257 5,903 1,784 50
Pennsylvania 7,084 14,313 4,257 103
Rhode Island 8 13 4 0
South Carolina 664 1,264 385 12
South Dakota 178 291 91 3
Tennessee 1,161 2,319 698 18
Texas 23,398 51,931 16,036 410
Utah 1,039 2,143 668 19
Vermont 24 39 12 0
Virginia 1,983 3,583 1,037 27
Washington 1,834 3,445 1,072 27
West Virginia 76 127 37 1
Wisconsin 1,738 3,169 997 28
Wyoming 42 65 20 1
State Totals 153,673 304,803 93,132 2,441 Interstate Spillovers 100,554 23,053 573 U.S. Totals 153,673 405,357 116,184 3,014
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 49
Appendix F-4 Impacts of Operations on State Economies (Retail and Entertainment), 2016
State Direct Spending
(In Thousands of Dollars) Total Output
(In Thousands of Dollars) Personal Earnings
(In Thousands of Dollars) Jobs Supported
Alabama 2,719 5,058 1,576 48
Alaska 119 198 63 2
Arizona 7,872 15,026 4,797 133
Arkansas 2,200 3,875 1,191 36
California 20,260 41,080 12,833 305
Colorado 8,712 18,044 5,674 151
Connecticut 1,647 2,860 862 20
Delaware 1,191 1,992 504 13
District of Columbia 1,327 1,620 160 4
Florida 29,911 57,286 18,334 531
Georgia 14,488 30,114 9,363 252
Hawaii 1,553 2,715 866 24
Idaho 1,494 2,483 788 24
Illinois 10,968 23,221 7,007 172
Indiana 5,291 10,194 3,072 85
Iowa 5,004 8,541 2,604 76
Kansas 4,040 7,347 2,055 57
Kentucky 5,872 11,048 3,208 94
Louisiana 3,802 7,090 2,221 62
Maine 546 946 302 9
Maryland 7,008 12,617 3,769 93
Massachusetts 6,188 11,237 3,374 79
Michigan 9,560 18,205 5,761 156
Minnesota 7,006 13,951 4,253 111
Mississippi 2,037 3,603 1,101 34
Missouri 7,880 15,024 4,292 122
Montana 1,097 1,884 598 19
Nebraska 2,168 3,712 1,145 33
Nevada 2,411 4,130 1,297 36
New Hampshire 585 1,016 294 7
New Jersey 6,775 13,140 3,819 93
New Mexico 1,571 2,680 838 26
New York 10,610 18,715 5,325 127
North Carolina 10,901 21,190 6,575 193
North Dakota 404 676 198 5
Ohio 9,762 19,863 6,025 155
Oklahoma 4,573 8,825 2,755 77
Oregon 3,881 7,033 2,126 60
Pennsylvania 10,561 21,337 6,346 154
Rhode Island 158 264 73 2
South Carolina 6,998 13,333 4,055 123
South Dakota 694 1,136 354 11
Tennessee 10,824 21,623 6,514 171
Texas 42,185 93,631 28,913 739
Utah 3,270 6,743 2,104 61
Vermont 194 319 97 3
Virginia 15,103 27,290 7,899 203
Washington 4,545 8,540 2,657 67
West Virginia 499 831 242 7
Wisconsin 6,965 12,700 3,997 113
Wyoming 61 94 29 1
State Totals 325,491 636,079 194,306 5,176 Interstate Spillovers 222,498 51,781 1,208 U.S. Totals 325,491 858,577 246,087 6,384
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
50 | Economic Impacts of Commercial Real Estate
Appendix F-5 Impacts of Operations on State Economies (in Four Categories), 2016
State Direct Spending
(In Thousands of Dollars) Total Output
(In Thousands of Dollars) Personal Earnings
(In Thousands of Dollars) Jobs Supported
Alabama 10,686 19,877 6,193 187
Alaska 897 1,495 475 12
Arizona 26,019 49,665 15,857 438
Arkansas 8,869 15,622 4,800 146
California 142,159 288,248 90,048 2,138
Colorado 33,764 69,937 21,991 585
Connecticut 4,315 7,495 2,258 53
Delaware 3,240 5,417 1,371 37
District of Columbia 30,140 36,773 3,626 91
Florida 76,213 145,964 46,714 1,352
Georgia 62,120 129,118 40,144 1,079
Hawaii 2,308 4,035 1,288 35
Idaho 5,181 8,608 2,732 85
Illinois 53,444 113,148 34,142 836
Indiana 19,748 38,047 11,467 319
Iowa 13,724 23,426 7,142 209
Kansas 23,449 42,650 11,931 330
Kentucky 21,234 39,952 11,602 341
Louisiana 8,142 15,183 4,756 133
Maine 2,001 3,465 1,106 33
Maryland 37,223 67,017 20,022 493
Massachusetts 29,866 54,230 16,284 382
Michigan 30,672 58,405 18,482 500
Minnesota 17,456 34,757 10,596 276
Mississippi 3,151 5,573 1,703 52
Missouri 23,912 45,591 13,025 369
Montana 2,361 4,053 1,286 40
Nebraska 8,367 14,324 4,420 128
Nevada 19,455 33,334 10,469 287
New Hampshire 934 1,621 469 12
New Jersey 18,110 35,122 10,209 248
New Mexico 4,711 8,036 2,513 77
New York 87,860 154,970 44,096 1,052
North Carolina 56,591 110,004 34,132 1,000
North Dakota 4,671 7,814 2,295 62
Ohio 40,153 81,703 24,782 638
Oklahoma 19,977 38,550 12,035 337
Oregon 32,435 58,776 17,765 503
Pennsylvania 28,627 57,838 17,203 417
Rhode Island 585 978 271 7
South Carolina 20,178 38,443 11,693 355
South Dakota 4,393 7,187 2,242 69
Tennessee 37,736 75,383 22,707 595
Texas 208,173 462,046 142,677 3,646
Utah 11,883 24,503 7,645 222
Vermont 426 700 213 6
Virginia 55,540 100,359 29,048 747
Washington 34,179 64,220 19,980 506
West Virginia 1,499 2,499 728 20
Wisconsin 29,608 53,989 16,990 479
Wyoming 750 1,163 359 10
State Totals 1,419,132 2,761,315 835,979 21,975 Interstate Spillovers 982,057 236,955 5,859 U.S. Totals 1,419,132 3,743,372 1,072,934 27,833
Sources: GMU Schar Fuller; Dodge Data & Analytics; BEA; NAIOP Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 51
Appendix G: National and State Multipliers
Appendix G-1 Output, Earnings and Employment Multipliers: Construction
State MULTIPLIERS
Output Earnings Jobs Alabama 2.1444 0.7018 17.0657
Alaska 1.6928 0.5958 12.0441
Arizona 2.0424 0.6888 16.4421
Arkansas 2.0016 0.6447 15.9508
California 2.1244 0.7031 14.5424
Colorado 2.1596 0.7216 16.7783
Connecticut 1.8400 0.5910 11.6449
Delaware 1.7637 0.4807 10.6261
District of Columbia 1.1226 0.0852 1.5548
Florida 2.0503 0.6902 17.3388
Georgia 2.2943 0.7505 18.1227
Hawaii 1.8257 0.6315 13.5220
Idaho 1.8333 0.6146 15.4965
Illinois 2.2974 0.7231 15.1972
Indiana 2.2002 0.6923 16.0555
Iowa 1.9324 0.6210 14.4339
Kansas 1.9857 0.5881 13.8961
Kentucky 2.1092 0.6446 15.9681
Louisiana 1.9853 0.6686 14.4823
Maine 1.8935 0.6338 15.8670
Maryland 1.8736 0.5931 12.2490
Massachusetts 1.8947 0.5980 11.7328
Michigan 2.1276 0.7064 17.0410
Minnesota 2.1818 0.6973 15.3290
Mississippi 1.9767 0.6423 15.9729
Missouri 2.1393 0.6519 15.4292
Montana 1.8439 0.6259 15.8797
Nebraska 1.8824 0.6143 13.9239
Nevada 1.8446 0.6140 13.3579
New Hampshire 1.9384 0.5927 12.5641
New Jersey 2.0473 0.6317 12.9788
New Mexico 1.7534 0.5929 14.7413
New York 1.8285 0.5688 11.3634
North Carolina 2.1890 0.7075 17.7512
North Dakota 1.7668 0.5587 11.4290
Ohio 2.2915 0.7241 16.4212
Oklahoma 2.0583 0.6860 15.6436
Oregon 2.0132 0.6346 14.9960
Pennsylvania 2.2512 0.7015 14.7823
Rhode Island 1.7570 0.5138 10.9996
South Carolina 2.1756 0.6993 17.8207
South Dakota 1.8466 0.6133 15.3338
Tennessee 2.2550 0.7066 15.7184
Texas 2.3987 0.7861 16.6634
Utah 2.2180 0.7294 17.2979
Vermont 1.8106 0.5865 14.5454
Virginia 1.9499 0.6094 14.1119
Washington 2.0715 0.6752 14.0483
West Virginia 1.7955 0.5522 12.8056
Wisconsin 2.0672 0.6858 16.0172
Wyoming 1.6172 0.5380 11.8665
U.S. Total 2.91 0.9209 20.5308
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
52 | Economic Impacts of Commercial Real Estate
Appendix G-2 Output, Earnings and Employment Multipliers: Soft Costs
State MULTIPLIERS
Output Earnings Jobs Alabama 1.9504 0.7622 17.4013
Alaska 1.7681 0.7092 13.8984
Arizona 2.1707 0.8421 18.4322
Arkansas 1.8058 0.7145 16.8312
California 2.2665 0.8663 15.7580
Colorado 2.3202 0.8871 18.5386
Connecticut 1.9391 0.7191 12.8534
Delaware 1.7835 0.5273 10.0302
District of Columbia 1.3955 0.2022 3.1768
Florida 2.1932 0.8517 19.3169
Georgia 2.3635 0.8845 17.9749
Hawaii 1.9704 0.7738 16.9016
Idaho 1.7974 0.7213 16.8244
Illinois 2.3566 0.8649 16.7056
Indiana 2.0197 0.7642 17.2753
Iowa 1.8170 0.7075 16.2597
Kansas 1.8959 0.6691 15.0110
Kentucky 1.9534 0.7103 16.6342
Louisiana 1.9363 0.7675 15.8866
Maine 1.8990 0.7577 17.7171
Maryland 2.0771 0.7601 14.4432
Massachusetts 2.1080 0.7791 13.6209
Michigan 2.0919 0.8204 17.4449
Minnesota 2.2082 0.8247 16.6418
Mississippi 1.8020 0.7008 16.6352
Missouri 2.0610 0.7019 14.9865
Montana 1.7842 0.7287 17.5553
Nebraska 1.8743 0.7315 15.7703
Nevada 1.9310 0.7505 15.7180
New Hampshire 1.9337 0.6957 14.3698
New Jersey 2.1958 0.7708 14.7128
New Mexico 1.7937 0.7225 17.1300
New York 2.0012 0.6790 11.9203
North Carolina 2.1533 0.8226 18.5370
North Dakota 1.6894 0.6438 13.4392
Ohio 2.1846 0.8187 17.1369
Oklahoma 1.9799 0.7849 17.8914
Oregon 2.0079 0.7623 17.5223
Pennsylvania 2.1531 0.7872 14.7621
Rhode Island 1.8565 0.6439 13.4657
South Carolina 2.0791 0.7870 18.5512
South Dakota 1.7417 0.6961 16.3575
Tennessee 2.1904 0.8134 17.1391
Texas 2.4033 0.9006 17.5630
Utah 2.2307 0.8572 20.7190
Vermont 1.8078 0.7099 16.2348
Virginia 2.0051 0.6892 13.3117
Washington 2.0789 0.8031 15.4905
West Virginia 1.6919 0.6512 13.7055
Wisconsin 1.9475 0.7634 16.7725
Wyoming 1.5631 0.6317 13.7244
U.S. Total 2.880766667 1.044866667 21.49676667
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 53
Appendix G-3 Output, Earnings and Employment Multipliers: Services to Buildings
State MULTIPLIERS
Output Earnings Jobs Alabama 1.7921 0.5761 25.0809
Alaska 1.5764 0.5213 20.2826
Arizona 1.8776 0.616 22.8987
Arkansas 1.6901 0.5376 23.7426
California 1.9982 0.6429 21.6728
Colorado 1.9947 0.6485 24.0099
Connecticut 1.7513 0.5404 18.8623
Delaware 1.6601 0.4465 17.6124
District of Columbia 1.2177 0.1281 5.3811
Florida 1.8995 0.6235 25.3805
Georgia 2.0961 0.6617 24.571
Hawaii 1.7394 0.5698 21.1433
Idaho 1.6313 0.535 23.9897
Illinois 2.1207 0.6551 22.2546
Indiana 1.9311 0.5964 22.4899
Iowa 1.7023 0.5335 22.3115
Kansas 1.7651 0.504 19.4051
Kentucky 1.8702 0.5591 22.8621
Louisiana 1.7898 0.5763 24.4788
Maine 1.7307 0.569 23.6287
Maryland 1.8013 0.5512 19.6379
Massachusetts 1.8272 0.5637 19.2655
Michigan 1.9229 0.6222 23.0957
Minnesota 1.9899 0.6237 22.7869
Mississippi 1.7011 0.5367 23.8003
Missouri 1.9055 0.564 22.3258
Montana 1.62 0.5388 24.4248
Nebraska 1.6901 0.5371 23.3536
Nevada 1.6976 0.5507 22.4998
New Hampshire 1.7273 0.5113 18.3862
New Jersey 1.9671 0.5849 20.1022
New Mexico 1.6267 0.5349 23.883
New York 1.7711 0.5195 18.1428
North Carolina 1.9619 0.622 26.0806
North Dakota 1.5619 0.4811 19.6003
Ohio 2.0495 0.638 21.9941
Oklahoma 1.8284 0.5931 24.0507
Oregon 1.8057 0.5636 21.5082
Pennsylvania 1.973 0.6053 20.7752
Rhode Island 1.7014 0.4916 17.8955
South Carolina 1.9018 0.5879 24.8989
South Dakota 1.5867 0.5005 22.4711
Tennessee 1.9968 0.6153 22.3613
Texas 2.1282 0.6744 25.5611
Utah 1.9962 0.6419 26.0185
Vermont 1.6388 0.5178 22.9434
Virginia 1.7734 0.5267 19.2935
Washington 1.8483 0.5931 21.649
West Virginia 1.5864 0.4818 19.2475
Wisconsin 1.8293 0.5893 23.364
Wyoming 1.4622 0.4767 21.9758
U.S. Total 2.7236 0.7447 16.6567
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
54 | Economic Impacts of Commercial Real Estate
Appendix G-4 Output, Earnings and Employment Multipliers: Management Services
State MULTIPLIERS
Output Earnings Jobs Alabama 1.98 0.803 22.2943
Alaska 1.8248 0.7556 16.3897
Arizona 2.2376 0.8924 23.0916
Arkansas 1.846 0.7584 21.0093
California 2.3451 0.9204 18.5128
Colorado 2.395 0.9402 22.2625
Connecticut 2.0074 0.7684 14.9747
Delaware 1.8181 0.5591 12.5816
District of Columbia 1.4135 0.2139 3.9423
Florida 2.2744 0.9078 22.4034
Georgia 2.4449 0.9391 20.853
Hawaii 2.0262 0.8216 22.2706
Idaho 1.8439 0.7653 21.339
Illinois 2.4404 0.9211 19.4311
Indiana 2.0687 0.8104 21.2033
Iowa 1.8622 0.7523 20.123
Kansas 1.9332 0.7053 18.2073
Kentucky 1.9977 0.7527 20.1535
Louisiana 1.9815 0.8119 19.7434
Maine 1.9471 0.8038 22.1073
Maryland 2.1356 0.806 16.649
Massachusetts 2.1767 0.8282 16.1734
Michigan 2.1419 0.8667 20.2411
Minnesota 2.2861 0.8786 20.0267
Mississippi 1.844 0.7433 20.7272
Missouri 2.1237 0.7465 18.8472
Montana 1.8319 0.774 21.8783
Nebraska 1.9236 0.7767 19.7741
Nevada 1.9881 0.7981 18.6263
New Hampshire 1.9737 0.7358 16.749
New Jersey 2.2792 0.8218 16.895
New Mexico 1.8326 0.7644 21.2845
New York 2.0894 0.7292 14.3098
North Carolina 2.2095 0.8705 21.323
North Dakota 1.7177 0.6796 17.0049
Ohio 2.24 0.8663 20.0086
Oklahoma 2.0412 0.8342 21.7367
Oregon 2.0601 0.8071 21.6918
Pennsylvania 2.2038 0.8314 17.0871
Rhode Island 1.9226 0.6893 16.8909
South Carolina 2.111 0.8275 22.6115
South Dakota 1.7875 0.7412 20.5708
Tennessee 2.2556 0.8624 19.7931
Texas 2.4683 0.9507 20.3011
Utah 2.3004 0.9085 24.974
Vermont 1.8634 0.7574 20.1201
Virginia 2.0516 0.7288 15.3673
Washington 2.1312 0.8488 18.4083
West Virginia 1.7251 0.6912 16.6841
Wisconsin 2.0073 0.8129 21.0737
Wyoming 1.6034 0.6733 16.7093
U.S. Total 2.8145 0.9642 17.5741
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 55
Appendix G-5 Output, Earnings and Employment Multipliers: Utilities
State MULTIPLIERS
Output Earnings Jobs Alabama 1.6086 0.3307 6.5199
Alaska 1.6383 0.3312 5.2654
Arizona 1.6111 0.3478 6.5592
Arkansas 1.5749 0.3128 6.0497
California 1.7673 0.3744 6.0142
Colorado 1.8653 0.4038 7.3335
Connecticut 1.4538 0.2852 4.3519
Delaware 1.5087 0.2585 4.2488
District of Columbia 1.18 0.0808 1.0895
Florida 1.5794 0.341 6.757
Georgia 1.6321 0.3469 6.6075
Hawaii 1.5094 0.3082 5.4147
Idaho 1.4261 0.2876 5.5179
Illinois 1.7448 0.3629 6.3962
Indiana 1.5917 0.3161 5.9731
Iowa 1.4148 0.2669 4.959
Kansas 1.6575 0.3163 5.7393
Kentucky 1.6203 0.312 6.0909
Louisiana 1.7652 0.37 6.7284
Maine 1.4518 0.2996 5.7155
Maryland 1.5159 0.2996 4.9417
Massachusetts 1.4981 0.2937 4.5211
Michigan 1.5343 0.3179 5.7387
Minnesota 1.6337 0.3324 5.8909
Mississippi 1.6126 0.3232 6.2809
Missouri 1.5637 0.2984 5.6998
Montana 1.6369 0.3304 6.3822
Nebraska 1.449 0.281 4.9393
Nevada 1.4366 0.288 4.9954
New Hampshire 1.4145 0.2601 4.2604
New Jersey 1.5929 0.3124 5.259
New Mexico 1.6668 0.3287 6.1891
New York 1.4862 0.2756 4.2802
North Carolina 1.5376 0.3168 6.0845
North Dakota 1.6824 0.3201 5.3225
Ohio 1.6617 0.3385 6.0981
Oklahoma 1.855 0.388 6.8763
Oregon 1.4821 0.2849 5.3646
Pennsylvania 1.7514 0.3578 6.0363
Rhode Island 1.401 0.239 3.9868
South Carolina 1.5395 0.3037 6.2564
South Dakota 1.4077 0.2807 5.2616
Tennessee 1.6064 0.3251 6.0574
Texas 1.9999 0.4358 7.7027
Utah 1.8415 0.3961 7.7567
Vermont 1.3631 0.2409 4.2614
Virginia 1.5589 0.3091 5.3104
Washington 1.5798 0.3234 5.7053
West Virginia 1.607 0.297 5.5595
Wisconsin 1.4854 0.3031 5.3796
Wyoming 1.5552 0.3 5.0743
U.S. Total 2.2475 0.5075 9.5091
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
56 | Economic Impacts of Commercial Real Estate
Appendix G-6 Output, Earnings and Employment Multipliers: Building Operations
State MULTIPLIERS
Output Earnings Jobs Alabama 1.8600 0.5796 17.5005
Alaska 1.6668 0.5291 13.4300
Arizona 1.9088 0.6094 16.8514
Arkansas 1.7614 0.5412 16.4663
California 2.0277 0.6334 15.0419
Colorado 2.0713 0.6513 17.3297
Connecticut 1.7367 0.5233 12.3964
Delaware 1.6718 0.4231 11.3119
District of Columbia 1.2201 0.1203 3.0098
Florida 1.9152 0.6129 17.7417
Georgia 2.0785 0.6462 17.3630
Hawaii 1.7486 0.5579 15.1559
Idaho 1.6616 0.5274 16.3440
Illinois 2.1171 0.6388 15.6471
Indiana 1.9267 0.5807 16.1293
Iowa 1.7069 0.5204 15.2083
Kansas 1.8189 0.5088 14.0737
Kentucky 1.8815 0.5464 16.0616
Louisiana 1.8648 0.5842 16.2925
Maine 1.7319 0.5526 16.5193
Maryland 1.8004 0.5379 13.2430
Massachusetts 1.8158 0.5452 12.8039
Michigan 1.9042 0.6026 16.3077
Minnesota 1.9911 0.6070 15.8070
Mississippi 1.7688 0.5405 16.5017
Missouri 1.9066 0.5447 15.4247
Montana 1.7171 0.5448 16.9047
Nebraska 1.7119 0.5283 15.3298
Nevada 1.7134 0.5381 14.7439
New Hampshire 1.7361 0.5021 12.7720
New Jersey 1.9394 0.5637 13.6905
New Mexico 1.7058 0.5334 16.3068
New York 1.7638 0.5019 11.9717
North Carolina 1.9439 0.6031 17.6678
North Dakota 1.6729 0.4912 13.2052
Ohio 2.0348 0.6172 15.8853
Oklahoma 1.9297 0.6024 16.8468
Oregon 1.8121 0.5477 15.5002
Pennsylvania 2.0204 0.6009 14.5764
Rhode Island 1.6717 0.4629 12.1988
South Carolina 1.9052 0.5795 17.6119
South Dakota 1.6360 0.5105 15.6378
Tennessee 1.9977 0.6017 15.7763
Texas 2.2195 0.6854 17.5132
Utah 2.0620 0.6433 18.6690
Vermont 1.6445 0.5011 15.2308
Virginia 1.8070 0.5230 13.4558
Washington 1.8790 0.5846 14.8114
West Virginia 1.6676 0.4856 13.4371
Wisconsin 1.8235 0.5738 16.1945
Wyoming 1.5509 0.4782 13.9011
U.S. Total 2.6378 0.7560 19.6129
Source: BEA (2007-2013) Note: Appendices include data for the District of Columbia, resulting in 51 states.
NAIOP Research Foundation | 57
NAIOP RESEARCH FOUNDATION-FUNDED RESEARCH Available at naiop.org/research
Industrial Space Demand Forecast, First Quarter (2017)
Office Space Demand Forecast, Fourth Quarter (2016)
Forecasting Office Space Demand (2016)
Are E-commerce Fulfillment Centers Valued Differently Than Warehouses and Distribution Centers? (2015)
Exploring the New Sharing Economy (2015)
The Promise of E-commerce: Impacts on Retail and Industrial Real Estate (2015)
Select U.S. Ports Prepare for Panama Canal Expansion (2015)
Preferred Office Locations: Comparing Location Preferences and Performance of Office Space in CBDs, Suburban Vibrant Centers and Suburban Areas (2014)
Workplace Innovation Today: The Coworking Center (2013)
Performance and Timing of Secondary Market Investment Activity (2013)
Stabilization of the U.S. Manufacturing Sector and Its Impact on Industrial Space (2013)
The Complexity of Urban Waterfront Redevelopment (2012)
The New Borderless Marketplace: Repositioning Retail and Warehouse Properties for Tomorrow (2012)
A Development Model for the Middle Ring Suburbs (2012)
How Fuel Costs Affect Logistics Strategies (2011)
Solar Technology Reference Guide (2011)
“The work of the Foundation is absolutely essential to anyone involved in industrial, office, retail and mixed-use development. The Foundation’s
projects are a blueprint for shaping the future and a road map that helps to ensure the success of the developments where we live, work and play.”
Ronald L. Rayevich, Founding Chairman NAIOP Research Foundation
We’re Shaping the Future
2201 Cooperative Way, Suite 300 Herndon, VA 20171-3034
703-904-7100 naiop.org/research
- Definitions
- Appendix A: Soft Costs Impacts by States
- Appendix B: Site Development Impacts by States
- Appendix C: Hard Costs Impacts by States
- Appendix D: Tenant Improvement Impacts by State
- Appendix E: Total Impacts by State
- Appendix F: Operating Impacts by State
- Appendix G: National and State Multipliers
- Survey of NAIOP Members
- Note on 2016 Methodology
- Outlook: Residential and Nonresidential Construction and the U.S. Economy
- Economic Contributions
- Building and Nonbuilding Expenditures (U.S. Census Data)
- Office, Industrial, Warehouse and Retail Development Expenditures (Dodge Data & Analytics Data)
- Introduction
- Jobs Housed and Payroll Value