The Latest in Innovative Research

NAIOP hosted a series of webinars that explored these reports in greater detail throughout 2020.

Economic Impacts of Commercial Real Estate, 2020 U.S. Edition

Development and construction of commercial real estate across the United States – office, industrial, warehouse and retail – generates significant economic growth at the city, state and national levels. This study measures the contribution to GDP, salaries and wages generated, jobs supported, and more from the development and operations of commercial real estate in the United States.

In 2019, combined commercial, residential, institutional and infrastructure development and operations generated the following economic benefits:

  • Supported 9.2 million American jobs in 2018 (a measure of both new and existing jobs).
  • Contributed $1.14 trillion to U.S. GDP.
  • Generated $396.4 billion in salaries and wages.

This annual report also includes data by state.

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The Evolution of the Warehouse

The Evolution of the Warehouse: Trends in Technology, Design, Development and Delivery

This report provides the real estate development community with insight into current and future trends in building and logistics technologies and their implications for industrial real estate. Steve Weikal and James Robert Scott, researchers at the MIT Real Estate Innovation Lab, interviewed professionals specializing in industrial building design and automated systems to identify emerging trends that will be of interest to industrial developers, building owners and tenants.

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A New Look at Market Tier and Ranking Systems

A New Look at Market Tier and Ranking Systems

Dividing and grouping the major metropolitan regions of the United States into ranked groups or “tiers” is a frequently used method to evaluate, prioritize and rank markets for investment. This project provides an understanding of the origins, methodologies and uses of market tier models.

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Midyear Economic Impacts of COVID-19 on the U.S. Commercial Real Estate Development Industry

Midyear Economic Impacts of COVID-19 on Commercial Real Estate Development Industry

The NAIOP Research Foundation commissioned Steve Fuller, Ph.D., professor emeritus at George Mason University, to undertake a study of the 2020 mid-year economy and how second quarter shocks may influence commercial real estate development in the future. After examining government and private-sector data, Fuller found declines in expenditures and values across most building types.

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Negoitating with Tenants

Working Together as a Team: Negotiating With Tenants and Leasing Space During COVID-19

This research brief draws from interviews with brokers and building owners, news sources, NAIOP webinars, and NAIOP survey data to identify best practices for triaging office and industrial tenant requests, offering reasonable accommodations to those tenants who need short-term assistance, and responding to uncooperative tenants. It also examines how owners are adapting the ways they show and lease space as well as new tenant preferences and safety expectations.

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Capital Improvements Research Brief

Using Capital Improvements to Create Competitive Advantage in the COVID-19 Era

This brief evaluates the merits of frequently discussed capital investments and their potential to create durable competitive advantages. It draws from an analysis of recent coverage in commercial real estate trade publications, as well as conversations with seven industry practitioners that took place in June 2020.

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Safe Office Research Brief

Navigating a Safe Return to Work: Best Practices for U.S. Office Building Owners and Tenants

Measures to contain the coronavirus outbreak temporarily slowed economic activity and dramatically reduced occupancies at many commercial buildings. As state and local governments outline plans for a phased reopening of the economy, office building owners and employers are formulating plans that will allow employees to return safely to work.

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Industrial and Office Space Demand Forecasts

Table 1 - Office Space Demand Forecast - 4Q20

These forecasts provide an outlook on current and future conditions in the U.S. commercial real estate market. The reports help to define linkages between economic and specific sector activity and the demand for office and industrial real estate.

The most recent Office Space Demand Forecast (Q4 2020) predicted that given the continued challenges facing the U.S. economy, office net absorption is forecast to be negative 18 million square feet in Q4 2020 and negative 10 million square feet in Q1 2021. However, growth in net absorption is forecast to resume in Q2 2021, and the total net absorption over the period from Q2 2021 to Q3 2022 will exceed negative absorption from the recession, resulting in overall gains in absorption over the next two years.

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The most recent Industrial Space Demand Forecast (Q3 2020) predicted negative 141 million square feet of industrial space absorption in Q3 2020. Actual absorption proved to be positive 67.7 million square feet, due to a surge in demand for e-commerce distribution facilities that had not accompanied past recessions. The authors of the forecast are monitoring absorption and economic trends and will update the predictive model underlying the forecast as needed.

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