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

NAIOP Research Foundation | 7

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.

NAIOP Research Foundation | 13

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

NAIOP Research Foundation | 15

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.

NAIOP Research Foundation | 19

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.

NAIOP Research Foundation | 21

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.

NAIOP Research Foundation | 23

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

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