Commercial real estate is a vital component of the local economy, providing job opportunities, generating revenue, and supporting small businesses. In this essay, we will explore why commercial real estate is essential to the economy, using references to support our claims.
According to the National Association of Realtors (NAR), commercial real estate contributed to the creation of 8.3 million jobs in the United States in 2018 alone. This job creation is a significant benefit of commercial real estate and highlights its importance in the local economy.
Furthermore, commercial real estate generates revenue for the community by providing property taxes. Property owners pay property taxes, which fund local government services, including schools, police, fire departments, and infrastructure projects. In 2018, commercial real estate contributed $229.4 billion to the U.S. economy, accounting for 6.2% of the country’s Gross Domestic Product (GDP). This revenue supports the local economy by providing funding for critical services and investments.
The growth and development of small businesses are also dependent on commercial real estate. By offering affordable and accessible commercial property options, communities can attract new businesses and support existing ones. According to the Urban Land Institute, small businesses are responsible for creating two-thirds of all new jobs in the United States. This statistic highlights the importance of supporting the growth of small businesses through commercial real estate development.
Finally, commercial real estate can have a positive impact on property values in the surrounding area. Well-maintained commercial properties can attract new businesses, investors, and residents, which can contribute to increased demand and higher property values. This increased demand can generate more revenue for the local economy and help to create a virtuous cycle of growth and prosperity.
In conclusion, commercial real estate is a critical component of the local economy. By investing in and supporting the development of commercial real estate, communities can help to create a vibrant and sustainable economy for years to come.
References:
National Association of Realtors. (2019). Commercial Real Estate International Business Trends. Retrieved from https://www.nar.realtor/research-and-statistics/research-reports/commercial-real-estate-international-business-trends
National Association of Realtors. (2019). Economic Impacts of Commercial Real Estate. Retrieved from https://www.nar.realtor/research-and-statistics/research-reports/economic-impacts-of-commercial-real-estate
Urban Land Institute. (2018). Entrepreneurship and Real Estate: A Winning Combination for Small Business and Economic Growth. Retrieved from https://americas.uli.org/wp-content/uploads/sites/96/ULI-Documents/Entrepreneurship-and-Real-Estate_A-Winning-Combination-for-Small-Business-and-Economic-Growth.pdf
