Development of industrial and warehouse construction projects accounted for a major part of commercial real estate expenditures nationwide in 2022.
With the Phoenix metro being one of the fastest-growing industrial markets in the country, Arizona's gross domestic product was a beneficiary of that activity. A new report from national real estate organization NAIOP found that Arizona's commercial real estate market ranked No. 2 in the nation from September 2021 to September 2022 for total output, direct spending, personal earnings and jobs supported by commercial real estate development.
Arizona reported more than $91 billion in total output, $41.2 billion in direct spending, $37 billion in personal earnings and 661,000 jobs supported during that time, which only trailed Texas. Those expenditures were made up of preconstruction costs, site development, on-site construction and tenant improvements. In addition to industrial and warehouse projects, the report looked at office and mixed-use projects as well.