CRE development posted first gains last year since 2007
Development and construction of commercial real estate rebounded in 2011, the first year to post gains since the recession began in 2007, according to a report from the NAIOP Research Foundation.
The total economic impact of the development of commercial real estate last year added $261.6 billion to the gross domestic product, compared with $231.7 billion in 2010, a 13 percent increase, according to the report.
Construction spending on commercial real estate totaled $92.3 billion, a more than 12 percent increase from 2010.
The 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.
The foundation predicted that construction spending would continue to rise this year and accelerate further in 2013 and 2014.
Texas led the nation in the development of commercial real estate, followed by New York, West Viginia, California and Arizona. Iowa ranked 34th in total spending.