Economic Impacts of Commercial Real Estate, 2025 U.S. Edition

The combined economic contributions of new commercial building development and the operations of existing commercial buildings in 2024 resulted in direct expenditures of $898.5 billion and the following impacts on the U.S. economy:

• Contributed $2.5 trillion to U.S. GDP.
• Generated $862.5 billion in personal earnings.
• Supported a total of 14.2 million jobs.

Other highlights from the report:

• Each $1 of construction spending generated a total value of $2.95 to the economy, reflecting the cumulative effects of the initial construction expenditures as they cycle throughout the economy.
• The U.S. Census Bureau estimates that private data centers represented 28.7% of office construction value put in place in 2024, an increase from 19.7% in 2023. This is the first year the organization has separated data center construction from financial office and general office construction.
• Industrial (manufacturing) and warehousing starts are down, but still significantly above pre-pandemic levels. Much of the new construction now coming online can be attributed to recent reshoring efforts in the U.S. The CHIPS Act and Inflation Reduction Act.
• Demand for retail space in 2024 remained strong and shifted toward smaller and more creative spaces. Retailers that thrived offered experiential shopping with a more personalized touch or other activities for consumers to engage in between shopping, such as dining. While larger department stores struggled, retail as a whole proved resilient.
• Some cities have experienced a larger recovery in office attendance than others. New York, for example, reached 82% utilization as of October 2024, and 91% for top-tier office buildings, indicative of a shift in demand to high-quality office properties.

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