Economic Impacts of Commercial Real Estate, 2025 U.S. Edition
02.07.25
By: Brian Lewandowski, Adam Illig, Ethan Street and Richard Wobbekind, Ph.D.
Release Date: January 2025
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.