Tuesday, July 21, 2015

Commercial development soars, and Pennsylvania leads the way



Last year was the best for commercial real estate development since 2007, according to a report by the Washington, D.C.-based NAIOP, the Commercial Real Estate Development Association.

And Pennsylvania was a leader of the pack.

According to a study on the economic impact of commercial real estate, Pennsylvania ranked fourth in the nation for office and warehouse commercial real estate development and sixth overall for commercial development.


The report showed more than $14.05 billion in commercial real estate development spending, with $6 billion in the office, industrial, warehouse and retail sectors alone.

That work was supporting 103,710 construction jobs in Pennsylvania.

“The industry is getting back to full health and making an even bigger contribution to our national economy, but it still has plenty of room to grow,” said Thomas J. Bisacquino, NAIOP president and CEO. “Office and industrial … were very strong, and we believe the activity in these areas will keep accelerating.”

The Lehigh Valley and Berks County are noted for recent warehouse development, particularly along Interstate 78. And the extension of Route 33 to I-78 about 13 years ago has led to warehouse and commercial development in Northampton County.

At the national level, 2014 was the best year since 2007. The report determined that the national economic contributions yielded by the development process increased by 40 percent over 2013, the largest gain since the market began to recover in 2011. Direct expenditures for 2014 totaled $174.31 billion, up from $124 billion the year before.

According to the report, while 2014 was a big year, projections are that 2015 will be the strongest year of the decade for commercial real estate development.

NAIOP is an advocacy organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate. Formerly, the acronym NAIOP represented the National Association for Industrial and Office Parks, but it dropped the words behind the acronym because they no longer reflected its membership.

Source: LVB

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