Commercial real estate (CRE) continues to be a cornerstone of the U.S. economy, generating trillions of dollars in economic activity and supporting tens of millions of jobs, according to a new report released by the NAIOP Research Foundation.

Using 2025 data, the study examines the economic contributions of commercial real estate from new development and the ongoing operations of existing buildings. It finds that direct expenditures of $1.4 trillion tied to commercial real estate development and operations in 2025 rippled throughout the economy, producing significant multiplier effects across industries and regions.

New Development

• Contributed $1.6 trillion to GDP, driving employment and economic output across every phase of the development lifecycle.
• Supported 7.4 million American jobs and $555 billion in personal earnings, spanning construction, professional services, and building operations and supporting local economies nationwide.

Ongoing Operations

Totaling 73.8 billion square feet as of the second quarter of 2025, building operations produced an estimated $752.4 billion in direct expenditures and:

• Contributed $2.0 trillion to U.S. GDP
• Generated $697.5 billion in personal earnings
• Supported 13.1 million jobs nationwide.

Combined

The combined economic contributions of new commercial development and operations of commercial, residential, institutional and infrastructure real estate in 2025:

• Contributed $3.5 trillion to U.S. GDP
• Generated $1.3 trillion in personal earnings
• Supported a total of 20.4 million jobs

The broader construction of commercial, residential, institutional and infrastructure real estate when combined with the operation of commercial buildings generated $7.3 trillion for the U.S. economy and supported 38.7 million jobs.

“This research underscores what communities across the country already know: commercial real estate is a major driver of economic activity,” said Marc Selvitelli, president and CEO of NAIOP. “Through their work, developers help shape communities and deliver the places that support how people live and work.”

New development of office, industrial, warehouse, retail and multifamily buildings generates economic activity across multiple phases, including preconstruction, site development, on-site construction, tenant improvements and initial building operations.

Commercial real estate’s economic footprint also extends well beyond construction sites. Development activity supports a wide range of professional and business services, including architecture and engineering, legal services, marketing and management, site engineering, grading and paving, and interior design and construction.

“By examining both new development and existing building operations, the NAIOP Research Foundation study provides a comprehensive picture of commercial real estate’s role in the U.S. economy,” said Selvitelli. “The findings underscore the industry’s importance not only as a driver of construction activity, but also as a long-term source of employment, income and economic stability at the national, state and local levels.”

The full report includes detailed national and state-level data, including top states for development overall and by the sectors of industrial manufacturing, warehouse, office, retail and multifamily.

Since 2008, NAIOP has conducted this comprehensive analysis to estimate the annual economic contribution of commercial real estate development and operations. The 2025 report was authored by Brian Lewandowski, Adam Illig, and Richard Wobbekind, Ph.D., Leeds School of Business, University of Colorado Boulder and draws on key data from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, Bureau of Economic Analysis, Dodge Construction Network, and the National Council of Real Estate Investment Fiduciaries (NCREIF).