Development and construction of new commercial real estate continued its climb nationally in 2012, according to a new report released by the NAIOP Research Foundation, a national organization for real estate development.
The good news comes with a caveat, however; industry experts are warn that global economic sentiment and uncertainty in DC are dampening a more fulsome recovery in the sector.
The positives: The commercial real estate industry supported approximately 2.3 million jobs and contributing $303.4 billion to the nation's economy, marking the second year that the sector posted gains since 2007. That figure is up from $261.6 billion in 2011, a near 16 percent increase. This addition to the economy generated $96.7 billion in new personal earnings.
Still, Thomas J. Bisacquino, president and CEO of NAIOP, was lukewarm on the near future.
“The commercial real estate industry is improving, yet is being hindered from reaching its full potential,” he said. “Developers and investors have to be able to anticipate levels of demand three-to-five years ahead, but their vision is clouded because of uncertainty in Washington and in state capitals, which explains the slow pace of recovery. If we don't get clarity on budget policy, tax reform or the renewal of terrorism risk insurance, it will hold us back from our true potential to really drive greater job creation and economic growth in America.”