Report: Commercial Real Estate in Washington State Supported 43,130 Jobs and $6.3 Billion of GDP in 2016

SEATTLE – In late February, the NAIOP Research Foundation released the NAIOP Economic Impacts of Commercial Real Estate report (2017 Edition). The report is conducted for purposes of estimating the annual economic contribution of commercial real estate development to the U.S. economy. 

National highlights from the 2017 report include:

• Commercial real estate development supported 6.3* million American jobs in 2016 (a measure of both new and existing jobs).
• Commercial real estate development contributed $465 billion to the GDP* in 2016.
• There were 410.1 million square feet of commercial real estate space built in 2016, with capacity to house 1.1 million new workers.

Locally, 2016 economic impacts in Washington State included: 

On Wednesday, February 15, attendees of the monthly Breakfast meeting were treated to the annual Capital Markets Forecast, sponsored by JLL, Andersen Construction, and Umpqua Bank. We sincerely thank our sponsors for their continued support.

This is why NAIOP works.

This morning in Washington, D.C., NAIOP Corporate named Washington State the 2017 Chapter of the Year, recognizing the overall strength of our local organization. The annual merit awards program evaluates chapter education, government affairs involvement, member recruitment and retention, communications, and chapter management. 

Earlier this week, Christie Baumel, Climate & Energy Advisor in Seattle's Office of Sustainability & Environment, announced that OSE Director’s Rule 2016-01 implementing the Seattle Building Tune-Ups requirement has been finalized. NAIOP Washington State's members were able to learn about and directly contribute to the development of this rule via a Sustainable Development Roundtable event in late 2015. 

Christie Baumel's announcement:

Happy New Year! The attendees for the January Breakfast Meeting were treated to travel across the Pacific courtesy of the Runstad Fellows with a program entitled Lessons from Auckland.

Outgoing President John Teutsch opened the meeting with thanks to JPC Architects for sponsoring the breakfast. We sincerely appreciate their support. And we sincerely thank John for his leadership.

Brief description, size and scope of your company:
14 properties in the Puget Sound region representing a variety of asset types: office/medical office/retail and mixed use.

How long have you been with your company?
Since 2008

That which doesn’t kill you, makes you stronger! Attendees at the December Breakfast meeting for NAIOP were treated to a vivid example of this at our Fifth Annual Defining Moments program.

Outgoing President John Teutsch began the meeting with a very nice rendition of Silver Bells. This was John’s last Breakfast meeting as President and we thank him for his great service and singing voice! John also thanked our sponsors, Venture General Contracting, GLY and The Broderick Group. We thank them for their continuing support.

We all know that Seattle is booming. In our November breakfast we heard about three neighborhoods that are contributing to that boom—in fact, they’re thriving!

Our sponsors were:

2016 NAIOP Washington State Night of the Stars Winners Announced

Those brave souls not fed up with the election were treated to a fascinating analysis by a true Washington insider, Morton Kondracke, at the October breakfast meeting.

The breakfast was sponsored by CREW Seattle & Puget Sound and we appreciate their continued support.

NAIOP, the Commercial Real Estate Development Association, has recognized Mollie Fadule, co-founder and partner, Cephas Partners, and Davis Vaughn, director, Security Properties, with its prestigious 2016 Developing Leaders Award.

Data met Dickens in our September Breakfast, “A Tale of Two Cities,” dealing with how the haves and have-nots are faring in a changing commercial real estate market.

Teutsch Partners, Holberg Company, Schwabe, Williamson & Wyatt, and GeoEngineers sponsored the meeting and we appreciate their continued support.

Finalists, First Winner and Hall of Fame Honoree Announced for 2016 NAIOP Washington State Night of the Stars, Honoring Local Real Estate Projects and Companies

Washington’s primary election was held on Tuesday, August 2; all ballots needed to be postmarked or delivered to a collection center by 8:00 p.m. Ballots submitted on Election Day can result ballot-counting for another week or more following Election Day. As of the evening of August 7, 1,357,000 votes had been counted, and another 60,000 remained to be counted. Turnout was at 33% and could climb a bit more as final ballots trickle in. Election results can be found on the Washington Secretary of State website.

Innovation is the watchword of our industry. As a great sage from bygone days said, “He who is not busy being born is busy dying.” Our July Breakfast highlighted some innovative projects that have been completed in our area. John Teutsch began the meeting and outlined the new members, plus previewed our next Breakfast Meeting, A Tale of Two Cities on September 21, and the Property Tour on July 21. Kris Glandon spoke about the Community Enhancement Project at New Start High School on September 24. Finally, Kip Spencer from SECO outlined the new South Port development in Renton.

In a continuing effort to bring to our members the latest news of the day, the May Breakfast explored the subject of the Washington State Convention Center Expansion. The breakfast was sponsored by Clark Nuber, PS, Auburn Mechanical, and VECA, and we sincerely thank them for their continued support. President John Teutsch began the meeting and gave the assembly an update on new members and we also received an update on the Summer Social. It sounds like a fun time will be had by all! John introduced Matt Griffin from Pine Street Group who is developing the Convention Center expansion.

Matt began by giving us some facts and figures on the current Convention Center. The addition will take place on an eight-acre site, essentially doubling the size. Matt talked about the uniqueness of a Public Facilities District which allows for targeted tax revenue to flow towards the Convention Center.

Over the past few months, the Developing Leaders have been busy experiencing varying aspects of the real estate world. In March, the group went on their first property tour of the year: Holland Partner Group’s South Lake Union multifamily development, JUXT. Developed and built by Holland, JUXT is a 361-unit apartment building located at 810 Dexter Ave N scheduled to open in May. Allison Shepard, Senior Development Manager at Holland Partner Group, lead the tour of JUXT, which features a large central courtyard, laptop lounge, rooftop gathering space, and a secret room referred to as the Speakeasy, among other amenities. The tour was a great opportunity for the group to ask questions and listen to the different angles from which each sector views a new development.

In a very highly attended event, the annual Broker’s Forecast was presented to our Breakfast attendees on April 20. The breakfast was sponsored by Adolfson & Peterson, Norris, Beggs & Simpson, CBRE and Intervest - we sincerely thank them for their continued support. President John Teutsch began the meeting and gave the assembly an update on new members and introduced Kris Beason who gave some background on Adolfson & Peterson. Mike Wood also spoke a few words about Norris, Beggs & Simpson. We heard about the Community Enhancement Project which will be on September 24 at the New Start High School in Burien.