Report Suggests Commercial Office Spending Contributes to Outlays, Jobs, GDP
A new report shows that commercial office building operation expenditures grow outlays, create job demand and contribute to U.S. GDP.
The Contribution of Office Building Operating Outlays on the U.S. and States’ Economies in 2009 detailed the impact of commercial office space on national and local economies.
The report showed that the expenditures that sustain office building operations — management, maintenance, repairs, building services and utilities — generate continuous and growing outlays that support local businesses, create job demand and contribute significantly to U.S. GDP.
The Building Owners and Managers Association (BOMA) International released the report.
The report found that the five billion square feet of commercial office space located within the markets served by BOMA International’s 91 local associations generated $40.8 billion in direct operating outlays in 2009 to the benefit of workers and businesses within their host jurisdictions.
This direct spending and its re-spending within those respective local jurisdictions, their states and the nation generated significant economic impacts, summarized below:
• For each dollar of outlay for office building operations, the national economy gained $2.90 with the result that $40.8 billion in annual operating outlays contributed a total of $118.4 billion to GDP in 2009;
• For each dollar of outlay for office building operations, workers in the U.S. realized an increase of $0.92 in personal earnings with the result that $40.8 billion in annual operating outlays generated a total of $37.6 billion in new earnings for workers residing within these office market areas and respective state economies in 2009;
• For each $1 million in outlays for office building operations, 24.4 jobs were supported nationwide with the result that $40.8 billion in annual operating outlays supported a total of 994,728 jobs across all sectors of the national economy in 2009. This is in addition to the more than one million jobs supported directly as a result of these outlays for office building operations; and
• The five billion square feet of commercial office space located in the 91 markets served by BOMA’s local associations provided work space for an estimated 21 million office jobs. The productivity of those office workers was supported and enhanced by the building and management services paid for by these operating outlays. The workers’ presence within these office buildings’ host jurisdictions also have their own significant annual economic and fiscal benefits accruing locally, at the state level and nationwide.
The analysis was limited to commercial office space in buildings with a minimum of 10,000 square feet and excluded buildings owned by their occupants (not available for leasing for general purpose office use), as well as government-owned office buildings.
The contents of the report can be found here