LAS VEGAS – All those construction cranes jokingly referred to as the state bird of Nevada indicate the thriving commercial real estate activity throughout the state.
A new study from the NAIOP Research Foundation shows commercial real estate development throughout Nevada is a “powerful economic engine, creating jobs and generating significant fiscal contributions to local and national economies.”
In Nevada, commercial real estate development contributed $6.3 million to the state’s GDP; $2.5 million in wages and salaries were generated and nearly 43,4500 jobs were created.
Nationwide, the commercial property business contributed $362.6 billion in hard costs of construction last year. “Nonresidential building construction expenditures surged 41.6% in 2022 and are up 74.2% from 2020 levels,” the annual report stated. “Total construction spending was up an estimated 10.8% in 2022 and accounted for approximately 20.7% of total GDP.”
A slowdown in commercial real estate construction and sales is forecast for 2023 due to higher loan costs and tighter borrowing standards by lenders.
About NAIOP Southern Nevada
NAIOP Southern Nevada is a chapter of NAIOP, the Commercial Real Estate Development Association, and it comprises nearly 700 members serving the Southern Nevada market. NAIOP is the leading organization for developers, owners and related professionals in office, industrial, retail and mixed-use real estate, with 21,000 members in North America. NAIOP advances responsible commercial real estate development and advocates for effective public policy. For more information, visit www.naiopnv.org. For more information on NAIOP corporate, visit www.naiop.org.
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