Commercial real estate—driven largely by industrial projects—supported more than $6 billion in direct spending in Louisiana last year, along with more than 92,000 jobs, a new report says.
The numbers put Louisiana in the nation’s top 10 for the amount commercial real estate contributed to a states’ GDPs, according to the NAIOP Research Foundation, a commercial real estate industry group. In all, the report says, the industry contributed north of $12 billion to Louisiana’s economy.
The bulk of the spending in Louisiana came from the industrial sector, which saw $5.6 billion in direct spending, while supporting more than 80,000 jobs. Warehouse and retail and entertainment posted less than a billion dollars in direct spending.
Louisiana ranked eighth on the list, behind Texas, California, Pennsylvania, New York, Florida, Georgia and Illinois. Looking only at industrial development, the Bayou State was third behind Pennsylvania and Texas.
Construction spending on office buildings slid last year but has posted gains in recent years, while warehouse and flex space rebounded after a nearly 10% dive in 2016. The retail sector ticked upwards last year but is projected to have far slower gains moving forward.
“While the construction sector appears to be poised for stronger growth in 2018 and 2019, there are good reasons to monitor the performance of individual building types and their changing market conditions as the U.S. economy’s current expansion extends its run into record territory,” the report says.