Blog > How Property Values Impact Economic Growth

June 3, 2019

How Property Values Impact Economic Growth

RealMassive | Economic Development

Economic development offices are hard at work ensuring that the right growth plans are set and achieved. They ensure new business opportunities are pursued, neighborhoods have the infrastructure they need to thrive, and so much more.

With so much focus on planning and executing initiatives, it can be easy to overlook the important role of commercial real estate in terms of economic growth.  In short, property values can be viewed as a strong indicator of local and regional growth. Let’s evaluate the connection between property values and economic growth as well as understand some of the broader economic impacts of commercial real estate.

How rising property values and economic growth go hand-in-hand

One major leg upon which economic growth stands is related to improvements in job rates – and commercial real estate (CRE) provides ample opportunities for just that. Job growth doesn’t benefit only from the construction and development side of CRE. Numbers are also boosted by the jobs those new and expanding businesses create.

Moreover, rising property values tend to instill consumer confidence and encourage consumer spending. In turn, this leads to improved economic growth. Business stability and strong demand for properties signal growth opportunities for both individual businesses and the community at large.

Economic Impacts of Commercial Real Estate

National studies also contribute to our understanding of property values, economic growth, and commercial real estate impacts more broadly. The NAIOP Research Foundation recently released its 2019 edition of its economic impacts report aimed at understanding how the development, construction and operation of new and existing commercial real estate buildings generate economic benefits.

Central to the report are how those economic benefits translate to growth in jobs, salaries and wages, and GDP. The following CRE highlights are supported in the report:

• More than 8 million American jobs were supported in 2018
• Upwards of $325 billion was generated in salaries and wages
• Overall, $1 trillion was contributed to the U.S. GDP

Tuning into market trends and property values in real time can give various institutions a huge advantage. That’s why at RealMassive, we make it our mission to keep economic development offices updated with commercial property data they need to make the biggest impact on their community’s economic future. With access to real-time commercial real estate data and property value metrics, you’ll have access to market indicators for economic growth as they occur. Learn more at