According to the BOMA 2020 Office Market Study, the commercial properties found in the markets represented by BOMA International’s U.S. local associations are a significant driver of the nation’s economic engine. Understanding the impact of these properties on the economy’s continued vitality is important for business and government leaders as they consider the strategic positions of their respective communities in an increasingly competitive global economy.
The data found in the BOMA 2020 Office Market Study covers U.S. private-sector office buildings 25,000 square feet or larger in the markets served by BOMA’s local associations. This new focus provides the clearest picture yet of the direct economic impact of BOMA members across the United States—and that picture is impressive! The 6.6 billion square feet of privately owned office space covered in this report contributed $204.4 billion to the national gross domestic product (GDP), including $79.2 billion in direct operating expenditures; generated $62.5 billion in new personal earnings; and supported nearly 350,000 real estate-specific jobs.
Did you know…
- Assuming an occupancy rate of 85 percent, the 6.6 billion square feet of private office space in BOMA’s local association portfolios provided work space for an estimated 29.4 American million jobs.
- For every $1 spent on office building operation expenditures in this portfolio, the United States economy gains $2.58.
- Each of the 350,000 office building operations jobs supports three additional jobs across all other sectors in the local, metropolitan area, state and national economies, totaling a whopping 1.4 million jobs.
The operating expenditures for commercial office buildings in the United States clearly continue to be a major source of economic activity, jobs and personal earnings, all to the benefit of their host economies. While the economic benefits from construction end when the building is ready for occupancy, the economic benefits flowing from the annual operating expenditures associated with the office building inventory extend over the lifespan of the buildings and grow as this inventory expands, supporting the economy’s vitality, creating new jobs, generating personal income and contributing year after year to the local tax base. And you thought it was just another day at work in the office!