Texas tops the U.S. in commercial building impact and jobs
Oil and cattle have long been the touchstones of Texas business.
But real estate also generates big bucks for the Lone Star State.
Commercial property activity generated more than $54 billion in Texas economic output in 2019 – more than any other U.S. state, according to a new report by the National Association of Industrial and Office Parks.
Each year the NAIOP puts a measure to nationwide commercial real estate investment and construction and makes estimates about how much it contributes in money and jobs around the country.
In 2019, investment and development of office, industrial, warehouse and retail buildings and the like supported 9.2 million American jobs and contributed $1.14 trillion to the U.S. GDP. That’s up from 8.3 million jobs in 2019 and an economic contribution of $1 trillion.
“The U.S. economy is in nearing 11 years of expansion, growing consistently since July 2009 and making it the longest in American history,” Thomas Bisacquino, NAIOP president and CEO, said in the new report. “Commercial real estate remains as a significant economic driver, facilitating growth and creating valuable jobs.
“Despite slowing global and U.S. fiscal growth, the economy’s expansion is expected to extend beyond 2020,” he said. “This is good news for our industry, as steady demand will drive new construction and development.”
Last year Texas had more than $20.9 billion in commercial construction spending and the industry job ranks totaled 378,700, the new study found.
California was a distant second with $15.4 billion in spending and 235,797 commercial property sector jobs.
The biggest chunk of nationwide construction last year was office building with $50.8 billion in projects. Warehouse and industrial projects were second at more than $49 billion.
In Texas alone, the NAIOP tracked more than $11 billion in office projects last year and more than $6 billion in direct spending on warehouse and industrial building.
In 2019 the Dallas-Fort Worth area was the second busiest metro area in the country for all types of building starts – both commercial and residential. With more than $20 billion in construction starts, D-FW was second only to New York City, according to Dodge Data & Analytics.