California ranks No. 5 for commercial construction


by KW Studio City on General June 26th has no comments yet!

Featured BusinessCalifornia ranked fifth in the U.S. last year in the development and construction of office, industrial, warehouse and retail space, according to a report.

California had $4.5 billion in spending and 70,817 jobs supported by construction according to the report.

According to a NAIOP Research Foundation    report, Texas was the top state, accounting for $7.9 billion in spending and 150,000 jobs supported in 2011.

New York ranked second with $6.5 billion in spending and 83,762 jobs supported; West Virginia ranked third with $5.9 billion in spending and 100,889 jobs supported. Arizona rounded out the top five with $4.2 billion in spending with more than 74,000 jobs supported.

This was the first year the commercial real estate industry posted gains nationwide since the recession began in 2007. The total economic impact of commercial real estate during 2011 added $261.6 billion to the Gross Domestic Product, compared to $231.7 billion in 2010. This is a 13 percent increase year-over-year.

U.S. construction spending on commercial real estate totaled $92.3 billion, a 12 percent increase over 2010. This spending supported nearly 2 million jobs nationally. These increases in construction spending and activity resulted in the building of 238.3 million square feet of new space, an increase of 2.5 percent from 2010. This new space has the capacity to house 610,000 jobs with an annual payroll of $26.8 billion.

In addition to the advances made in 2011, forecasts for 2012 call for project construction spending to increase and to accelerate further in 2013 and 2014, according to the report.

“For the first time we are seeing across the board increases in this sector,” said Thomas Bisacquino, NAIOP president and chief executive officer. “We believe this is the most solid evidence yet of a strengthening recovery.”

NAIOP is the leading organization for owners, developers and related professionals in the office, industrial, retail and mixed-use real estate sectors. NAIOP has 15,000 members across North America. The NAIOP Research Foundation was established in 2000 to provide research information on how real estate benefits communities across North America.

 

Los Angeles Business from bizjournals by Sacramento Business Journal

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