The Real Deal Miami

Recession slashed U.S. commercial real estate spending in half, report shows

January 13, 2011 12:14PM

U.S. spending on commercial real estate development and construction experienced a nearly 48 percent drop-off between 2007 and 2009, according to a new report by the NAIOP Research Foundation. Overall, commercial real estate’s contribution to the gross domestic product in 2009 was $288 billion, comprised of $148.6 billion in hard costs, or actual construction; $139.4 billion in soft costs, including architecture engineering, marketing, legal advising and tenant improvements; plus another $2.52 billion on building operations. “This decline in construction spending has resulted in a noticeable effect on the nation’s economy, and it has negatively impacted the ability for communities across the county to pull out of the recession,” said Thomas Bisacquino, president and CEO of NAIOP. TRD