Commercial real estate development in Arizona is a powerful economic engine, creating jobs and generating significant fiscal contributions to local, state and national economies in 2022:
Our take:
Commercial real estate is an important component of the GDP (Gross Domestic Product) of Arizona. The GDP measures the total value of goods and services produced within a state and is often used as a broad indicator of economic health.
Commercial real estate can contribute to the GDP in several ways. First, the construction of new commercial buildings and the renovation of existing ones can create jobs and generate economic activity. This includes not only the construction workers themselves but also the suppliers of materials and equipment needed for the project.
Once a commercial property is completed, it can also generate ongoing economic activity through the businesses that occupy the space. For example, a retail store in that leases space in a shopping center (for example Scottsdale Fashion Square) creates jobs and generates revenue for the landlord, which can in turn contribute to the GDP.
Finally, commercial real estate can also be a significant source of tax revenue for local governments. Property taxes and other fees paid by commercial property owners can help fund public services and infrastructure projects that contribute to the overall economic health of Arizona.
Overall, commercial real estate plays an important role in driving economic growth and contributing to the GDP of Arizona.
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