Texas is tops in the U.S. for commercial development impact
Despite the pandemic, commercial property development contributed more than $ 65 billion to the Texan economy in 2020.
That’s more than any other state, according to an annual study by a leading real estate group.
In the NAIOP, the Commercial Real Estate Development Association’s report, Texas had nearly twice as much economic impact as the development of the other top states.
The commercial real estate sector’s contribution to the state economy last year rose from an estimated $ 54 billion in 2019 despite the economic burden of the COVID-19 pandemic. Many commercial real estate projects have been delayed across the country due to the coronavirus outbreak.
Commercial development activities supported more than 428,000 jobs in Texas last year, up from 380,000 last year, the study said.
Texas has long been a leader in the real estate sector in terms of jobs, construction, and investment.
The 2020 nationwide development of projects such as office, industrial, warehouse, and retail added $ 1.01 trillion to the U.S. economy and generated personal income of $ 338.1 billion, according to NAIOP.
The industry’s strong performance last year was seen as new office and retail projects fell by more than 28%.
NAIOP researchers predict that the commercial development market will not return to prandemic levels until 2022.
“Many factors point to a rebound in commercial real estate in 2021,” said Thomas J. Bisacquino, president and CEO of NAIOP, in the report. “Obviously we have been dealing with several unknowns and one unexpected downturn in 2020. However, we believe that while the pandemic has accelerated trends already advancing in real estate, we have a bright future.
Office workers will be returning to offices regularly in 2021, the industrial and warehouse sectors will continue to grow as the demand for e-commerce increases, and the retail sector will reshape itself as the shopping experience evolves. “