How Commercial Real Estate Benefits Economic Development

The Greater Phoenix Economic Council (GPEC) has been named the top economic development organization in the United States by the International Economic Council (IEDC). The honor is given to the leading organization that demonstrates program innovation, quality leadership, well-performing metrics, and impactful community interaction. As Arizona’s economy continues to grow, we’re reminded of how important commercial real estate is in further developing our communities’ local economies. We’ve highlighted 4 areas of how commercial real estate can benefit economic development:

  1. Creates Jobs and New Opportunities
  2. Promote Sustainable Communities
  3. Improve City Infrastructure
  4. Commercial Real Estate Growth is a Symbol for Economic Growth

Commercial Real Estate Creates Jobs and New Opportunities

According to a recent report by NAIOP, the impact of new developments and ongoing operations of commercial real estate has generated 9.2 million jobs for Americans. Furthermore, in 2019 alone it contributed $1.14 trillion to the U.S. GDP. 

 

While the COVID-19 pandemic has halted some developments in 2020, many developers are continuing to build on commercial real estate. The largest industries include:

  • Data Centers
  • Infrastructure
  • Industrial
  • Self Storage

 

Commercial Real Estate Can Promote Sustainable Communities

Real estate and land developers are increasingly incorporating environmentally-friendly features and practices into their construction sites and developments. When developing new buildings, companies are now integrating sustainable materials and creating LEED-certified structures.

 

Commercial Real Estate Can Improve City Infrastructure

As developers build a piece of real estate, the municipality may require them to improve the infrastructure of where the property is located. This may include enhancements to the road, replacing old piping, installing sidewalks, or increasing the number of parking spaces. It makes developers accountable for many of an area’s improvements and saves some of the financial burdens that would affect the local community.

 

Commercial Real Estate Growth is a Symbol for Economic Growth

When businesses do well and begin to grow, it’s common for them to want locations that will fit their needs. Oftentimes, this calls for new commercial buildings to be constructed. Growth comes with many challenges, but it is necessary for the prosperity of your local community. The construction of commercial real estate signifies the idea that your area is growing and needs to facilitate the growth in industries like retail, manufacturing, schools, tourism, and real estate. 

 

Grow Your Community with Plaza Companies

With almost 40 years of experience, Plaza Companies is capable of assisting anyone with their commercial real estate needs. Our expert team of brokers has the knowledge and expertise in offering financial support, strategic guidance, and a portfolio of buildings ready to move your business forward. Contact us today to get started.

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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With over 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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