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BOMA 2020 OFFICE
MARKET STUDY
A new perspective on the impact of U.S. office buildings on the economy
Legal Notice
Building Owners and Managers Association (BOMA) International is a not-for-profit corporation, incorporated in the State of Illinois, which is exempt from federal taxation under Section 501(c)(6) of the Internal Revenue Code, whose purposes include to actively and responsibly represent and promote the interests of the commercial real estate industry and disseminate education programs on the commercial real estate industry. This document was prepared by Dr. Stephen S. Fuller of George Mason University for BOMA International to provide information to those in the commercial real estate industry and other interested parties about the economic impact of office building operations (including management, maintenance and repair, servicing and utilities) in the office markets served by BOMA local associations. Because the market boundaries of BOMA local associations are not always coterminous with the metro areas that they represent, the data presented in this document may differ according to the geographic areas in question.
BOMA publications are intended to provide current and accurate information and are designed to assist readers in becoming more familiar with the subject matter covered. BOMA published this document for a general audience in accordance with all applicable laws, including the antitrust laws. Such publications are distributed with the understanding that BOMA does not render any legal, accounting or professional advice. Use of this publication is voluntary, and reliance on this document should be undertaken based on an independent review by the user. Information provided in this document is “as is” without warranty of any kind, either expressed or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose or freedom from infringement. BOMA hereby disclaims all liability for any claims, losses or damages in connection with use or application of this document.
This document is the sole and exclusive property of BOMA. Reproduction or redistribution in whole or in part without the express written consent of BOMA is prohibited.
Copyright ©2020 by Building Owners and Managers Association (BOMA) International. All rights reserved. No portion of this document may be reproduced without permission.
Acknowledgements
BOMA International wishes to extend its appreciation to those companies and individuals who contributed to the development of Where BOMA 2020 Office Market Study: A new perspective on the impact of U.S. office buildings on the economy.
Yardi Systems, Inc.
Stephen S. Fuller, Ph.D., Author
John Salustri, Editor
TABLE OF CONTENTS
Executive Summary 5
Research Approach 6
Building Expenditures & the National Economy 8
88 Markets—State by State 10
City by City: How Building Expenditures Impact the Top 30 15
Building Expenditures & Jobs 16
Trends to Watch 17
Conclusions 18
BOMA 2020 Office Market Study: Key Findings At a Glance 19
Appendix A: Glossary of Terms & Usage 20
Appendix B: Office Market Inventory and Annual Operating Costs by State and MSA 21
Appendix C: Jobs Supported by Office Building Operating Expenditures 25
Appendix D: Economic Multipliers & Impact Calculations 29
Appendix E: Aggregate Economic Impact Multipliers for Building Operations 30
Appendix F: Yardi® Matrix Definition of Building Operating Costs 34
Appendix G: BOMA Local Associations 35
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About BOMA International
Founded in 1907, the Building Owners and Managers Association (BOMA) International is a federation of U.S. local associations and global affiliates. The leading trade association for commercial real estate professionals for more than 100 years, it represents the owners, managers, service providers and other property professionals of all commercial building types, including office, industrial, medical, corporate and mixed-use. BOMA International is the partner individuals in the commercial real estate industry choose to maximize value for their careers, organizations and assets. Its mission is to advance a vibrant commercial real estate industry through advocacy, influence and knowledge. Learn more at www.boma.org.
BOMA International Officers:
Scott O. Jones, PEChair and Chief Elected OfficerPrincipal Jacobs
Shelby Christensen, LEED Green AssociateChair-ElectSenior Vice President, OperationsLiberty Property Trust
Mark Dukes, BOMA Fellow, CCIM, RPAVice ChairVice President, Asset ManagementPhysicians Realty Trust
Keith MajorSecretary/TreasurerSenior Vice President, OperationsBentallGreenOak (Canada) LP
Henry H. Chamberlain, APR, FASAE, CAEPresident and Chief Operating OfficerBOMA International
About the Author
Professor Stephen S. Fuller, Ph.D., joined the faculty at George Mason University in 1994 as professor of Public Policy and Regional Development. In 2001, he was appointed university professor and, in 2002, he became the Dwight Schar Faculty Chair. He served as director of the Center for Regional Analysis from 2002 to 2015 and is currently serving as the founding director of the Schar School’s Stephen S. Fuller Institute. Prior to joining George Mason University, he served on the faculty at George Washington University for 25 years. Dr. Fuller received a B.A. in economics from Rutgers University and his doctorate in regional planning and economic development from Cornell University.
About the Editor
John Salustri is one of the nation’s most respected writers in the field of commercial real estate. A regular contributor to BOMA Magazine, he is a multiple award winner for excellence in journalism. Salustri is best known as the founding editor of GlobeSt.com, prior to which, he was editor of Real Estate Forum. Salustri currently works as a freelance writer, editor and voice-over artist.
About Yardi Matrix
Yardi® Matrix provides data and analysis of current office market fundamentals, as well as other commercial and residential property types, at the property, submarket, market and national levels.
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EXECUTIVE SUMMARY
Think about the process of going to work. From the time you get into your car (or your train or commuter ferry), you are not alone. You are a part of a massive engine of economic production, a contributor to the local, state and national economies. Whether you’re purchasing a bagel at the lobby deli or making decisions that drive seven-digit corporate expenditures, the movement of capital—small or large—accrues to economic gain.
The American office is the platform for that gain. In a very real sense, it could be said that if the U.S. Gross Domestic Product (GDP) rides on the back of American business, American business (largely) rides on the back of the nation’s inventory of office buildings.
An Industry unto Itself
But office buildings—the focus of this report—are so much more than the little bagel shop or multinational corporations. They are sites of employment for the people who construct, maintain and manage the building, and a host to major expenditures of their own. In this way, America’s office buildings are themselves massive engines of direct and indirect capital movement.
These expenditures support jobs across all sectors of business and represent a growing share of the local, state and national economies. Even as America—and for that matter, the globe—redefines how it works, the prime location for work remains the office.
The data represented here specifically highlights U.S. private-sector office buildings of a certain size in the markets served by BOMA’s 88 local associations to best represent what BOMA members are contributing to the economy. This focus provides the clearest picture yet of the direct economic impact of BOMA members across the U.S. The 6.6 billion square feet of privately- owned office space contributed $204.4 billion to the national GDP. Included in that is $79.2 billion in direct operating expenditures. Understanding the impact of this 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.
Breaking this massive contribution down still further:
• For each dollar spent on office building operations, the national economy gained $2.58. The result is that the above-mentioned total $79.2 billion in direct operating expenditures contributed $204.4 billion to the 2018 GDP.
• For each dollar spent on operations, U.S. workers enjoyed an additional $0.79 in personal earnings. Again, that $79.2 billion put $62.5 billion in workers’ pockets.
In terms of jobs, consider that:
• For each $1 million spent in office building operations, 17.7 jobs were supported. Here, that $79.2 billion in annual operating outlays supported a total of 1.4 million direct, indirect and induced jobs (see Glossary, page 20) across all sectors of the national economy. Twenty- five percent of that—349,544 of these jobs—were directly related to building operations. Put another way, every operations job supported 3.0 additional jobs across all sectors in the local, metropolitan area, state and national economies.
• 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 million jobs. Further, their productivity was supported and enhanced by the operational and management services paid for by these operating expenditures. Casting the net of economic gain still wider, these office workers went out and spent money (remember that bagel shop?), always to the annual economic good of the city and state.
All of the above are prime benefits derived from the operational expenditures of office buildings. Then come the secondary benefits. As that $79.2 billion is re-spent and cycled through the local, state and national economies, it generates additional economic activity reflecting a multiplier of 2.58. This comes in the creation and support of significant job growth (direct and indirect) and the generation of new personal earnings, thus further stimulating the economy. These direct and indirect economic impacts are important because of their magnitude, dependability and long-term growth pattern.
And you thought it was just another day at work in the office.
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Occupancy
85%
$204.4 billion Contribution to GDP
1,399,319 Jobs Supported
$62.5 billion New Personal
Earnings
6
RESEARCH APPROACH
BOMA 2020 Office Market Study focuses on all commercial, privately owned office buildings of 25,000 square feet or larger within the office markets served by BOMA International’s 88 U.S. local associations. It includes both tenant-occupied and owner-occupied buildings, but it excludes government-owned assets. Even with those exclusions, the total measurement paces out to 6.6 billion square feet.
Space usage data from Yardi® Systems’ Matrix application were aggregated by groupings of ZIP codes that coincide with BOMA local association boundaries. At the metropolitan level, ZIP codes conform to the boundaries used in the U.S. Census Bureau’s definition of Metropolitan Statistical Areas (MSA).
The operating cost data for these office buildings were also developed by Yardi® Matrix. For the definition of which expenses are included in these data, see Appendix F. For office markets where operating cost data were not collected, estimates were made based on similar markets in the same state where these were available or similar markets in adjacent states. However, if these data were included in the 2016 edition of Where America Goes to Work, these values were used and adjusted at two percent per year to 2018 dollar values.
These data are reported in two primary tables: In Table 2, the data for each BOMA local association appears under their respective state. This includes line items for the nation’s top 30 markets (marked by an *) where BOMA has local associations. These 30 markets also appear listed separately and in alphabetical order in Table 3.
For the Washington, D.C., metropolitan area, spanning the District of Columbia and portions of Maryland and Virginia, the data are reported alphabetically under the District of Columbia and not within the two separate states. Minneapolis and St. Paul, Minnesota, are reported as separate market areas, although the multipliers used were for the combined MSA. Similarly, San Francisco and Oakland-East Bay in California, as well as Dallas and Fort Worth in Texas, are reported as independent market areas.
The economic impacts of direct spending for building operations in 2018 use the most recent multipliers (Regional Input-Output Modeling System, RIMS II) purchased from the Bureau of Economic Analysis of the U.S. Department of Commerce. State multipliers are used to calculate the statewide impacts of local operating expenditures, and metropolitan area-level multipliers are used to calculate the economic impacts for the 30 MSAs reported separately. For the Washington, D.C. metropolitan area, which spans portions of three states (Maryland, Virginia and West Virginia) and the District of Columbia, the multipliers for the District of Columbia were used to calculate the Table 2 impacts.
Note: For purposes of this report, that is the definition of what henceforward will be called the national office building stock or inventory.
6.6 billion square feetTOTAL OFFICE SPACE
TENANT OWNER
OCCUPIED
RESEARCH APPROACH
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The economic impact of office building operating expenditures is a function of what is being purchased, whether or not it is locally supplied, and how labor- intensive these services or products are. That is, the more labor-intensive these services are, the greater their payroll effect, the more likely the benefits will be retained locally and the broader the impacts are across the retail and consumer services sectors in the local economy. Office building operating expenditures were separated into four groups: utilities, management/ administrative, maintenance and repair and services to buildings. The total operating expenditures associated with each of these four categories was calculated across the office markets of all 88 BOMA local associations in 2018.
These multipliers and the economic impact calculations are discussed in Appendix D and are presented by state and metropolitan area in Appendix E.
These multipliers were newly released in 2018. Generally, the post-recession multipliers are smaller than the pre-recession multipliers with fewer direct jobs being generated per $1 million in office building operating expenditures. Also, lower personal earnings were generated as a result of the new direct, indirect and induced jobs supported by these expenditures. (See The Ripple Effect, page 9, and the Glossary, page 20.)
This changing personal earnings profile reflects the increased efficiency of the industry and increased outsourcing of building operations, in addition to cost savings resulting from the increased adoption of technology in building operations and systems (a national trend since the recession).
It is important to note that, while operating expenses typically include taxes, fees and insurance, these categories of expenditures are not included in this report, as they do not generate direct local economic benefits.
It should also be noted that, with a new data source and different building parameters as the foundation of this report, direct year-over-year comparisons with previous years’ data are difficult. But certain macro trends are still discernible, and this year’s study sets the stage for future comparisons.
The results of these analyses—the 2018 economic impacts of privately owned commercial office building operating expenditures of their host states’ economies’ and the 30 metropolitan area economies—are presented in the following pages. For more detail on the research methodology, see Appendix D.
The Nation’s Top 30 Markets
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BUILDING EXPENDITURES & THE NATIONAL ECONOMY
The national office building inventory, as defined in the previous section, generated annual expenditures totaling $79.2 billion, or $12.05 per square foot. These buildings, and therefore those expenditures, supported local employment and business activities in four broad categories: utilities, repairs and maintenance, management and building services. Table 1 presents a summary of the economic impacts generated by annual expenditures for office building operations.
Table 1: Operational Expenditures: The Economic Impact
Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report
Contribution to GDP
$204,406,193,008
New Personal Earnings
$62,478,403,361
Jobs Supported
1,399,319
Total Building Operating Outlays
$79,201,880,410Average Annual
Operating Cost (SF)
$12.05
Total Office Space (SF)1
6,570,913,694
IMPACTS ON U.S. ECONOMY
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BUILDING EXPENDITURES & THE NATIONAL ECONOMY
The Ripple Effect
The $79.2 billion in operating outlays starts a ripple effect of ever-larger GDP gains.
Before we explore that dynamic, it is necessary to define some terms (see also Building Expenditures & Jobs, page 8, and the Glossary, page 20). First come direct workers, those jobs supported directly by spending for office building operations, largely employees of the building ownership and management firms or contractors providing services directly to them. Then come the indirect jobs. These are suppliers and vendors supporting the industry. Finally come the induced jobs, supported by the payroll spending of the industry’s direct employees acting as consumers, frequenting the coffee shops, dry cleaners and home improvement stores, and generally making the city in which they live an economically vibrant place.
When the additional outlays generated by that $79.2 billion are accounted for and we factor in the outlays such as indirect and induced expenditures, in the immortal words of U.S. Senator Everett Dirksen, pretty soon you’re talking about real money. In fact, $204.4 billion in real money flowed into the U.S. GDP last year as a result of those outlays.
Included in that impressive figure is the $62.5 billion in new personal earnings (labor income) that came from both doling out payrolls and the re-spending of that payroll money for consumer goods and services. At the national level, where these annual office building operating expenditures have their greatest cumulative impact, each $1 in direct operating outlays generated $0.79 of new personal earnings, which would contribute directly to the tax bases in the local and state jurisdictions served by these office markets.
This annual spending, spread across the national inventory, supported a total of 349,544 direct workers. Each of these direct jobs in turn supported three additional indirect and induced jobs across the breadth of the local, state and national economies, bringing the total of jobs supported to nearly 1.4 million in 2018.
Pulling back still further, these indirect and induced jobs totaled almost 1.05 million positions, fully 75 percent of the total jobs supported by these annual office building operating expenditures. At the national level, the aggregate jobs multiplier for buildings accounted for in this survey was 17.7 jobs per $1 million in outlays for building operations.
An Economic Powerhouse
On a daily basis, and in a very real sense, the generation of the nation’s annual GDP starts at the cubicle level. In addition to all of the work represented by the outlays for building operations—most of which goes on behind the scenes—there are the businesses housed within the national office inventory. Assuming an 85 percent occupancy rate and an average of 190 square feet per office worker, that 6.6 million square houses 29.4 million workers, each producing an average $131,090 in annual GDP value, for a total annual Gross Regional Product (GRP) contribution of $3.854 trillion.
In 2018, the GDP value of this white-collar cohort accounted for 18.7 percent of the U.S. economy.
Each $1 in direct operating outlays generated $0.79 of new personal earnings.
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88 OFFICE MARKETS—STATE BY STATE
Table 2 divvies out the economic impact of the national office inventory by state, and that output is almost as impressive as on the national level. It should be noted that BOMA local associations representing metropolitan-wide office markets are included here (*) and identified separately in Table 3. There are no data provided for states not represented by those local associations.
For each listed locale, there are five data columns:
The first column—Total Expenditures—is the total annual expenditures for office building operations. The square footage of this office space was multiplied by the average 2018 operating cost in its respective market area, both provided by Yardi® Matrix.
The second column—Contributions to the State Economy—represents the total contribution of the annual building operating expenditures in each office market to their respective state’s economy, its gross state product (GSP). This is true as well for in the cases of the 30 metropolitan areas (*).
The third column—New Taxable Personal Earnings—represents the new personal earnings (wages and salaries) generated as a result of the building operating expenditures. This is new income that accrued to workers residing in the state or metropolitan area within which the local associations are located. This encompasses all workers in businesses that benefit from the payroll spending of employees involved in building operations and the re-spending of these payroll dollars across all sectors of the local or state economies.
The fourth column—Jobs Supported—represents the full-time, year-round direct, indirect and induced employment impact of the expenditures shown in column one.
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88 MARKETS
88 OFFICE MARKETS—STATE BY STATE
Alabama
Alabama $209,372,663 $393,599,668 $124,508,688 3,263
North Alabama $72,493,485 $136,280,502 $43,110,063 1,130
Alaska
Anchorage $158,208,259 $258,698,190 $84,692,836 1,882
Northwest Alaska $70,927,944 $115,979,601 $37,969,502 844
Arizona
Greater Phoenix* $1,074,155,910 $2,089,206,392 $672,958,678 16,317
Greater Tucson $136,738,048 $265,952,084 $85,666,387 2,077
Arkansas
Greater Little Rock $103,141,658 $181,279,199 $56,609,299 1,428
California
Inland Empire $74,252,732 $149,596,979 $47,699,955 971
Greater Los Angeles* $2,030,406,612 $4,090,660,201 $1,304,333,207 26,557
Oakland-East Bay* $566,995,171 $1,142,325,172 $364,237,698 7,416
Orange County $1,305,018,858 $2,629,221,493 $838,344,114 17,069
Sacramento $829,202,554 $1,670,594,386 $532,679,721 10,846
San Diego* $1,215,853,950 $2,449,580,953 $781,064,577 15,903
San Francisco* $3,096,633,954 $6,238,788,428 $1,989,277,652 40,502
Silicon Valley $1,758,076,141 $3,541,996,000 $1,129,388,113 22,995
Colorado
Southern Colorado $124,047,752 $255,863,995 $82,128,916 1,856
Denver Metro* $1,794,725,558 $3,701,845,805 $1,188,242,924 26,846
Connecticut
Greater Hartford $386,248,670 $693,886,079 $211,442,178 4,239
Southern Connecticut $779,252,910 $1,399,908,371 $426,582,524 8,551
District of Columbia
Washington, D.C., MSA* $4,319,217,295 $5,293,632,717 $494,334,419 9,361
Florida
Ft. Lauderdale and the Palm Beaches $1,142,967,148 $2,243,387,345 $726,155,604 18,640
Greater Tampa Bay* $790,087,285 $1,550,763,571 $501,962,204 12,885
Jacksonville $395,538,938 $776,353,938 $251,295,776 6,451
Miami-Dade* $1,013,099,934 $1,988,487,223 $643,647,716 16,522
Total Contributions to New Taxable Jobs State Expenditures the State Economy Personal Earnings Supported
Table 2: Economic Impacts of Office Building Operations by State and Metropolitan Area
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88 OFFICE MARKETS—STATE BY STATE
Orlando* $470,438,405 $923,364,740 $298,881,280 7,672
Southwest Florida $150,645,732 $295,683,677 $95,709,000 2,457
Tallahassee $46,386,812 $91,046,874 $29,470,701 757
Georgia
Atlanta* $2,166,032,730 $4,592,909,952 $1,444,473,077 35,506
Hawaii
Hawaii $290,162,769 $510,360,041 $165,008,313 3,701
Idaho
Boise $112,109,860 $192,013,359 $61,483,850 1,639
Illinois
Chicago* $2,454,080,267 $5,271,119,005 $1,605,888,775 33,244
Peoria $240,160,107 $515,839,893 $157,154,770 3,253
Suburban Chicago $843,490,068 $1,811,732,317 $551,958,813 11,426
Indiana
Indianapolis* $352,439,240 $683,106,545 $207,868,664 4,800
Michiana $53,511,385 $103,717,104 $31,561,015 729
Iowa
Iowa $251,464,300 $430,940,658 $129,101,772 3,211
Kansas
Wichita $122,850,165 $229,484,108 $65,417,713 1,563
Kentucky
Kentucky $354,136,402 $660,783,113 $195,917,111 4,919
Louisiana
New Orleans $206,041,861 $378,179,533 $121,744,984 3,056
Shreveport $56,820,742 $104,291,632 $33,573,956 843
Maryland
Baltimore $892,152,830 $1,604,826,814 $469,428,515 10,121
Massachusetts
Boston* $2,821,146,645 $5,186,678,107 $1,583,439,083 32,354
Michigan
Metro Detroit* $1,037,176,140 $2,019,693,097 $647,223,841 14,759
Mid-Michigan $194,486,865 $378,724,272 $121,364,666 2,768
West Michigan $175,101,665 $340,975,471 $109,267,816 2,492
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Total Contributions to New Taxable Jobs State Expenditures the State Economy Personal Earnings Supported
88 OFFICE MARKETS—STATE BY STATE
Minnesota
Duluth $49,721,328 $99,724,825 $31,124,308 670
Minneapolis* $949,397,754 $1,904,183,341 $594,299,259 12,802
St. Paul* $294,101,008 $589,871,040 $184,099,879 3,966
Mississippi
Mississippi $99,784,747 $175,067,349 $54,764,364 1,439
Missouri
Kansas City $731,782,257 $1,427,999,896 $413,694,804 10,170
St. Louis* $670,719,613 $1,308,842,254 $379,174,565 9,321
Nebraska
Omaha $234,632,256 $416,272,818 $129,669,516 3,138
Nevada
Nevada $316,548,242 $553,492,515 $176,855,503 4,268
New Jersey
New Jersey $2,833,731,565 $5,625,878,119 $1,632,158,538 33,654
New Mexico
New Mexico $128,718,297 $215,149,415 $69,340,547 1,844
New York
Capital Region-Albany $182,831,121 $326,129,583 $94,084,895 1,909
Greater Buffalo $219,677,099 $391,854,518 $113,045,835 2,294
Central New York $102,216,041 $182,330,418 $52,600,375 1,067
Long Island $759,336,089 $1,354,484,732 $390,754,351 7,929
New York City* $15,160,389,444 $27,042,723,681 $7,801,536,408 158,312
Greater Rochester $185,703,646 $331,253,521 $95,563,096 1,939
Westchester $428,715,253 $764,731,551 $220,616,869 4,477
North Carolina
Greater Charlotte* $859,642,748 $1,709,292,149 $535,321,030 13,148
Raleigh-Durham* $554,065,438 $1,101,689,865 $345,030,400 8,474
Ohio
Akron $96,207,644 $196,412,716 $60,221,175 1,385
Columbus $478,010,187 $975,881,697 $299,210,476 6,880
Dayton $238,987,690 $487,905,318 $149,594,345 3,440
Greater Cincinnati $365,831,258 $746,862,805 $228,992,076 5,265
Greater Cleveland* $774,272,727 $1,580,716,486 $484,656,013 11,144
Toledo $93,968,031 $191,840,433 $58,819,289 1,352
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Total Contributions to New Taxable Jobs State Expenditures the State Economy Personal Earnings Supported
88 OFFICE MARKETS—STATE BY STATE
Note: *Indicating metro area; calculated using state multipliers for both non-metro areas and metro areas
Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform to the U.S. Census definitions.
Oklahoma
Oklahoma City $210,147,114 $398,470,450 $127,879,773 3,231
Tulsa $214,965,951 $407,607,687 $130,812,155 3,305
Oregon
Portland Metro* $607,617,031 $1,114,415,207 $342,513,721 7,863
Pennsylvania
Philadelphia* $1,400,051,950 $2,849,840,746 $858,161,843 18,380
Pittsburgh $847,151,804 $1,724,398,676 $519,261,698 11,122
Tennessee
Chattanooga $84,862,927 $175,729,905 $53,582,452 1,238
Knoxville $120,003,800 $248,497,869 $75,770,399 1,750
Memphis $320,092,628 $662,831,809 $202,106,485 4,668
Nashville* $507,565,013 $1,051,040,252 $320,476,550 7,402
Texas
Austin* $1,039,454,639 $2,315,593,100 $730,346,816 16,696
Corpus Christi $58,680,081 $130,721,617 $41,230,092 943
Greater Dallas* $2,677,643,327 $5,964,986,041 $1,881,379,143 43,008
Fort Worth* $686,312,118 $1,528,897,505 $482,220,052 11,023
Houston* $3,098,652,988 $6,902,869,261 $2,177,191,056 49,770
San Antonio $575,789,718 $1,282,686,755 $404,564,251 9,248
Utah
Utah $1,018,821,917 $2,090,851,808 $665,036,006 16,645
Washington
Seattle-King County* $1,528,530,766 $2,869,319,741 $908,329,408 19,586
South Puget Sound $127,091,893 $238,573,725 $75,524,358 1,629
Spokane $79,631,572 $149,482,396 $47,321,062 1,020
Wisconsin
Wisconsin $452,323,270 $842,112,847 $266,768,956 6,258
State Total ($) $79,201,880,410 $152,232,877,047 $45,649,974,656 1,000,891
Spill Over ($) $52,173,315,961 $16,828,428,705 398,429
US Total ($) $79,201,880,410 $204,406,193,008 $62,478,403,361 1,399,319
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Total Contributions to New Taxable Jobs State Expenditures the State Economy Personal Earnings Supported
CITY BY CITY: HOW BUILDING EXPENDITURES IMPACT THE TOP 30
The state-level economic impacts of the national office inventory, as reported in Table 2, include the 30 largest BOMA-covered metropolitan areas. In Table 3, these 30 MSAs are highlighted separately. As should be expected, these outlays are significant, although smaller than at the state level owing simply to the fact that the states’ economies are larger and capture a greater percentage of these benefits than their respective metropolitan area economies.
Metropolitan Area Total Expenditures Output Personal Earnings Jobs Supported
Table 3: Metropolitan Area Office Market Economic Impacts
Atlanta $2,166,032,730 $4,462,027,424 $1,364,600,620 33,574
Austin $1,039,454,639 $1,943,780,175 $598,725,872 14,137
Boston $2,821,146,645 $4,852,372,230 $1,309,012,043 27,647
Chicago $2,454,080,267 $5,129,027,758 $1,560,795,050 34,112
Dallas $2,677,643,327 $5,649,827,421 $1,745,823,450 40,432
Denver Metro $1,794,725,558 $3,499,714,839 $1,055,298,628 23,511
Fort Worth $686,312,118 $1,448,118,569 $447,475,501 10,363
Greater Charlotte $859,642,748 $1,702,092,641 $500,312,079 12,723
Greater Cleveland $774,272,727 $1,401,433,636 $380,167,909 8,982
Greater Los Angeles $2,030,406,612 $3,898,380,695 $1,096,419,570 22,334
Greater Phoenix $1,074,155,910 $2,116,087,143 $671,347,444 16,220
Greater Tampa Bay $790,087,285 $1,516,967,587 $470,101,935 12,009
Houston $3,098,652,988 $6,042,373,327 $1,871,586,405 43,381
Indianapolis $352,439,240 $687,256,517 $209,701,348 4,864
Metro Detroit $1,037,176,140 $1,918,775,859 $570,446,877 12,861
Miami-Dade $1,013,099,934 $1,864,103,878 $577,466,962 14,893
Minneapolis $949,397,754 $1,898,795,508 $569,638,653 13,102
Nashville $507,565,013 $1,025,281,327 $314,690,308 7,360
New York City $15,160,389,444 $27,895,116,577 $8,368,534,973 174,344
Oakland-East Bay $566,995,171 $992,241,550 $266,487,731 5,386
Orlando $470,438,405 $842,084,745 $248,391,478 6,398
Philadelphia $1,400,051,950 $2,772,102,862 $823,230,547 17,361
Portland Metro $607,617,031 $1,166,624,700 $361,532,134 7,960
Raleigh-Durham $554,065,438 $975,155,170 $270,383,934 6,649
San Diego $1,215,853,950 $2,103,427,333 $638,323,324 13,131
San Francisco $3,096,633,954 $5,419,109,420 $1,455,417,959 29,418
Seattle-King County $1,528,530,766 $2,705,499,456 $813,178,368 17,884
St. Louis $670,719,613 $1,328,024,835 $410,480,403 8,853
St. Paul $294,101,008 $588,202,017 $176,460,605 4,059
Washington, D.C. $4,319,217,295 $6,867,555,499 $1,995,478,390 43,624
Metro Totals $56,010,905,664 $104,711,560,699 $31,141,510,498 687,571
15
BUILDING EXPENDITURES & JOBS
Among the important benefits of this annual operational spend are the jobs it supports, which naturally fall into three categories as defined previously: Direct beneficiaries, who totaled 349,544 in 2018, and indirect and induced jobs. Every direct job supports three indirect and induced positions, which in turn adds up to 1.04 million positions. In total, the annual office building operating expenditures in 2018 supported 1.4 million jobs, or 17.7 jobs per $1 million in operating expenditures.
Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report2 Sum of national office square feet and jobs supported by expenditures for building operations. 3 Jobs supported outside of the state in which the direct expenditures for office building operations occurred.
Area Office Inventory1 Direct Jobs Indirect Jobs Total Jobs
State2 6,570,913,694 308,840 692,051 1,000,891
Spillover3 40,704 357,724 398,429
U.S. 349,544 1,049,775 1,399,319
Table 4: Direct and Indirect Jobs Associated with Expenditures for Office Building Operations
Every direct job supported three indirect and induced jobs, across the breadth of the state and national economies.
Direct, indirect and induced jobs supported by the operating spend of the national office inventory in 2018 totaled 1.4 million.
Every $1 million spent on building operations supported 17.7 direct, indirect and induced jobs.
16
TRENDS TO WATCH
Obviously, the economy has evolved significantly since the Great Recession, so it stands to reason that these changes would be reflected in the impact that building operating expenditures have on their respective metropolitan and state economies.
One of the biggest changes in the years that have passed since the recession is in the adoption of technology and the resulting (presumed) increase in workforce productivity. For office building operations, these efficiencies have affected the mix of on-site labor; the use of contract and so-called gig economy labor; the durability of building equipment and materials; the effectiveness of building maintenance and cleaning supplies; innovations in security systems; and much more. Economic changes have also impacted the supply chain and, short of tariff disputes, made our economy more global.
Trends such as these are naturally reflected in building operating expenditures and their impact on the GDP, mostly, for purposes of this report, in the multipliers used to determine total contributions to the GDP, jobs and personal earnings (See Glossary, page 20, for in-depth multiplier definitions). Specifically, we are seeing:
Other factors also are at work here, and they may help to explain these trends, especially the changes in personal earnings accruing to local resident workers. That multiplier is locally specific, reflecting the wage profile of jobs that are held by residents of the metropolitan area or state in which these building operating expenditures take place. Commuting patterns and sub-contracting (in this age of doing more with less) may affect the mix of salary levels, with lower-paying jobs being held by non-resident workers, with higher-paying jobs going to local residents who presumably can afford housing more convenient to their places of work.
There is another dynamic at work here. As noted in the Research Approach (page 6), a new data provider to this study makes direct year-over-year comparisons more challenging. Nevertheless, the overall trend that has taken shape since the Great Recession is toward greater efficiency and cost-effectiveness in operating and managing the national stock of office buildings.
The contribution of a dollar of direct office building expenditure now generates a smaller contribution to the GDP. In 2013, this multiplier was 2.76; in 2015, it was 2.64; and, in 2018, it was 2.58.
The multiplier used to determine the number of full-time, year-round jobs (direct and indirect) supported by building expenditures has also shrunk. In 2013, that number was 21.9 jobs per $1 million of operating expenditures; in 2015, it was 19.6 jobs; and, in 2018, it was 17.7 jobs.
Finally, the multiplier used to determine the earnings accruing to local resident workers has also decreased. In 2013, it was $0.87 per $1.00 of operating expenditures; in 2015, it was $0.76; and, in 2018, it was $0.79.
17
CONCLUSIONS
The annual operating expenditures for privately owned 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. The economic impacts of $79.2 billion in operating expenditures in 2018 for office buildings served by the 88 local associations of BOMA International contributed $204.4 billion to the national GDP, generated new personal earnings totaling $62.5 billion accruing to workers residing locally and supported 1.4 million full-time, year-round jobs.
Additionally, these buildings supported the broader economy by providing a productive working environment for the estimated 29.4 million workers who work there.
To the extent that the economy continues to expand, so, too, should the benefits of building expenditures to the local, state and national 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.
$62.5 billion Salaries and Income
1.4 million Jobs Created and Supported
$204.4 billion Contribution to
the National Economy
Served by 88 Local Associations
18
BOMA 2020 OFFICE MARKET STUDY: KEY FINDINGS AT A GLANCE
The key findings of this research are summarized below and in Table 5:
• The operating expenditure for the national inventory of office buildings included in this analysis totaled $79.2 billion in 2018, or $12.05 per square foot. In turn, those expenditures:
a) Added $204.4 billion to the U.S. GDP, reflecting a total output multiplier of 2.58.
b) Generated $62.5 billion in new personal earnings, or 79 cents for each $1.00 of building operations expenditure.
c) Supported direct employment of 349,544 workers.
d) Supported 1.04 million indirect and induced jobs through the spending and re-spending of payroll dollars in both state and national economies.
• In addition, the 6.6 billion square feet of office space treated in this study accommodated more than 29.4 million workers (assuming 190 gross sq. ft. per worker and an 85 percent occupancy).
Sources: BOMA International, Yardi® Matrix, The Stephen S. Fuller Institute at the Schar School, GMU1As defined for purposes of this report and reflecting state-level economic multipliers.230 metropolitan area impacts reflecting metro-level multipliers included in respective state-level impacts.3 State-level impacts, plus spillover impacts generated in one state but accruing to another state, but not included in that state’s impact totals.
Area Total Total Personal Jobs Outlays Output Earnings Supported
State Impacts1 $79.2 $152.2 $45.6 1,000,891
Metro Area Impacts2 $55.0 $104.7 $31.1 687,571
U.S. Impacts3 $79.2 $204.4 $62.5 1,399,319
Table 5: Economic Impacts of Office Building Operating Expenditures, 2018($ in billions)
19
APPENDIX A Glossary of Terms & Usage
BOMA Local Associations: The 88 BOMA local associations are defined by their general office market areas, normally a political unit (state, metropolitan area) for which economic information is reported.
Direct Outlays: The annual spending associated with office building operations, including maintenance and repair, utilities, management and other services. (Note: See also Appendix F, page 34, for a breakdown and definitions of building operating costs as used by Yardi® Matrix.)
Economic Impact: The generation of new spending measured in dollars, including direct, indirect and induced activity, as these dollars are re-cycled through the local, state and U.S. economies.
Gross Regional Product (GRP); Gross State Product; (GSP); Gross Domestic Product (GDP): The value of goods and services produced within the respective geographic (and national) area.
Indirect Benefits: The additional economic benefits, measured in dollars or jobs resulting from the value generated by direct outlays or expenditures as these dollars are re-spent within the metropolitan, state and national economies. Indirect and induced benefits include increases in jobs and personal income that in turn contribute to retail and consumer services, education and health, transportation, housing utilities and government.
Multiplier: A number used to calculate the total economic impact of direct spending for office building operations. Types of multipliers include:
• Output multiplier, which measures the impact of a direct outlay on the overall economy.
• Personal earnings multiplier, measuring the total personal wages and salaries generated as a result of the direct outlays and the jobs they support.
• Employment multiplier, which measures the total number of jobs that can be supported by direct outlays (per $1 million). There is also a direct jobs multiplier that indicates how many indirect jobs are supported by each direct job generated in office building operations.
National Office Building Inventory: Buildings of 25,000 square feet or more within the service areas of BOMA International’s 88 local associations, including owner- and tenant-occupied buildings, but excluding government-owned assets.
Spillover Impacts: Economic impacts that are generated by direct spending for office building operations in one state or metropolitan area but realized by another state due to worker commutation. These economic impacts are not reflected as benefitting states’ multipliers but are captured in the U.S. multipliers and reported in the U.S. totals.
Total Output:
The sum of the direct and indirect impacts reflecting the combination of the initial expenditures and their subsequent accumulated value as these are cycled through the economy. This includes benefits from the re-spending of personal earnings and contributions to GDP, GSP or GRP.
20
Office Market Inventory and Annual Operating Costs by State and MSA APPENDIX B
Operating Expense Total RentableState Per Square Foot Square Feet
Alabama
Alabama $6.25 33,499,626
North Alabama $4.69 15,457,033
Alaska
Anchorage $9.60 16,480,027
Northwest Alaska $3.74 18,964,691
Arizona
Greater Phoenix* $7.73 138,995,330
Greater Tucson $8.82 15,503,180
Arkansas
Greater Little Rock $7.50 13,752,221
California
Inland Empire $7.81 9,504,958
Greater Los Angeles* $13.63 148,944,147
Oakland-East Bay* $11.74 48,312,472
Orange County $10.84 120,433,634
Sacramento $8.88 93,378,666
San Diego* $9.97 121,926,790
San Francisco* $18.10 171,122,566
Silicon Valley $10.14 173,380,290
Colorado
Southern Colorado $7.97 15,568,242
Denver Metro* $11.60 154,664,388
Connecticut
Greater Hartford $9.05 42,688,845
Southern Connecticut $14.82 52,581,168
District of Columbia
Washington, D.C., MSA* $14.96 288,640,557
Florida
Ft. Lauderdale and the Palm Beaches $11.60 98,497,686
Greater Tampa Bay* $9.37 84,302,954
Jacksonville $8.17 48,401,730
Miami-Dade* $13.97 72,530,064
Orlando* $8.50 55,371,752
21
APPENDIX B Office Market Inventory and Annual Operating Costs by State and MSA
Southwest Florida $10.97 13,735,023
Tallahassee $6.20 7,476,920
Georgia
Atlanta* $9.61 225,346,726
Hawaii
Hawaii $8.55 33,937,166
Idaho
Boise $7.07 15,857,123
Illinois
Chicago* $14.21 172,725,244
Peoria $7.19 33,401,962
Suburban Chicago $9.06 93,100,449
Indiana
Indianapolis* $7.92 44,499,904
Michiana $7.04 7,601,049
Iowa
Iowa $9.59 26,221,512
Kansas
Wichita $10.28 11,945,757
Kentucky
Kentucky $7.94 44,601,562
Louisiana
New Orleans $9.42 21,872,809
Shreveport $6.40 8,878,241
Maryland
Baltimore $9.16 97,439,147
Massachusetts
Boston* $17.98 156,939,622
Michigan
Metropolitan Detroit* $7.81 132,767,043
Mid-Michigan $8.03 24,220,033
West Michigan $8.04 21,778,814
22
Operating Expense Total RentableState Per Square Foot Square Feet
Office Market Inventory and Annual Operating Costs by State and MSA APPENDIX B
Minnesota
Duluth $8.50 5,849,568
Minneapolis* $11.82 80,321,299
St. Paul* $10.25 28,698,381
Mississippi
Mississippi $9.44 10,565,941
Missouri
Kansas City $10.04 72,857,652
St. Louis* $8.88 75,531,488
Nebraska
Omaha $8.50 27,616,791
Nevada
Nevada $6.73 47,035,400
New Jersey
New Jersey $12.23 231,741,214
New Mexico
New Mexico $7.04 18,283,849
New York
Capital Region-Albany $6.92 26,405,419
Greater Buffalo $7.66 28,693,456
Central New York $7.57 13,499,213
Long Island $14.16 53,625,430
New York City* $28.67 528,826,198
Greater Rochester $6.68 27,799,947
Westchester $13.19 32,507,981
North Carolina
Greater Charlotte* $8.16 105,348,376
Raleigh-Durham* $6.76 82,010,870
Ohio
Akron $7.40 13,001,033
Columbus $8.88 53,829,976
Dayton $6.14 38,897,736
Greater Cincinnati $7.43 49,250,304
Greater Cleveland* $9.41 82,299,397
Toledo $7.71 12,187,812
23
Operating Expense Total RentableState Per Square Foot Square Feet
APPENDIX B Office Market Inventory and Annual Operating Costs by State and MSA
Oklahoma
Oklahoma City $6.44 32,611,284
Tulsa $6.95 30,939,256
Oregon
Portland Metro* $8.99 67,603,141
Pennsylvania
Philadelphia* $8.58 163,176,218
Pittsburgh $9.88 85,778,838
Tennessee
Chattanooga $7.86 10,796,810
Knoxville $8.41 14,265,787
Memphis $9.95 32,176,581
Nashville* $8.84 57,390,888
Texas
Austin* $14.32 72,607,896
Corpus Christi $9.42 6,229,308
Greater Dallas* $10.02 267,229,873
Fort Worth* $9.00 76,256,902
Houston* $11.78 262,954,259
San Antonio $10.48 54,941,767
Utah
Utah $7.78 131,021,337
Washington
Seattle-King County* $11.41 133,940,656
South Puget Sound $7.94 15,998,476
Spokane $7.51 10,600,582
Wisconsin
Wisconsin $8.96 50,459,981
US Total $12.05 6,570,913,694
1 Office space in privately owned commercial buildings of at least 25,000 square feet.
Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform
to the U.S. Census definitions.
24
Operating Expense Total RentableState Per Square Foot Square Feet
Jobs Supported by Office Building Operating Expenditures APPENDIX C
Alabama
Alabama 33,499,626 3,263 1,070 2,193
North Alabama 15,457,033 1,130 371 759
Alaska
Anchorage 16,480,027 1,882 654 1,229
Northwest Alaska 18,964,691 844 293 551
Arizona
Greater Phoenix* 138,995,330 16,317 4,985 11,333
Greater Tucson 15,503,180 2,077 635 1,443
Arkansas
Greater Little Rock 13,752,221 1,428 482 946
California
Inland Empire 9,504,958 971 287 684
Greater Los Angeles* 148,944,147 26,557 7,841 18,716
Oakland-East Bay* 48,312,472 7,416 2,190 5,226
Orange County 120,433,634 17,069 5,040 12,029
Sacramento 93,378,666 10,846 3,202 7,643
San Diego* 121,926,790 15,903 4,695 11,207
San Francisco* 171,122,566 40,502 11,958 28,544
Silicon Valley 173,380,290 22,995 6,789 16,206
Colorado
Southern Colorado 15,568,242 1,856 540 1,316
Denver Metro* 154,664,388 26,846 7,813 19,033
Connecticut
Greater Hartford 42,688,845 4,239 1,378 2,860
Southern Connecticut 52,581,168 8,551 2,781 5,771
District of Columbia
Washington, D.C., MSA* 288,640,557 9,361 3,994 5,366
Florida
Ft. Lauderdale and the Palm Beaches 98,497,686 18,640 5,660 12,980
Greater Tampa Bay* 84,302,954 12,885 3,913 8,973
Jacksonville 48,401,730 6,451 1,959 4,492
Miami-Dade* 72,530,064 16,522 5,017 11,505
Orlando* 55,371,752 7,672 2,330 5,342
Total Rentable Region Square Feet Jobs Direct Jobs Indirect Jobs
25
APPENDIX C Jobs Supported by Office Building Operating Expenditures
Total Rentable Region Square Feet Jobs Direct Jobs Indirect Jobs
Southwest Florida 13,735,023 2,457 746 1,711
Tallahassee 7,476,920 757 230 527
Georgia
Atlanta* 225,346,726 35,506 10,373 25,133
Hawaii
Hawaii 33,937,166 3,701 3,701 -
Idaho
Boise 15,857,123 1,639 561 1,078
Illinois
Chicago* 172,725,244 33,244 9,662 23,582
Peoria 33,401,962 3,253 946 2,308
Suburban Chicago 93,100,449 11,426 3,321 8,105
Indiana
Indianapolis* 44,499,904 4,800 1,498 3,302
Michiana 7,601,049 729 227 501
Iowa
Iowa 26,221,512 3,211 1,051 2,161
Kansas
Wichita 11,945,757 1,563 506 1,056
Kentucky
Kentucky 44,601,562 4,919 1,630 3,288
Louisiana
New Orleans 21,872,809 3,056 1,025 2,031
Shreveport 8,878,241 843 283 560
Maryland
Baltimore 97,439,147 10,121 3,203 6,917
Massachusetts
Boston* 156,939,622 32,354 10,093 22,261
Michigan
Metropolitan Detroit* 132,767,043 14,759 4,365 10,394
Mid-Michigan 24,220,033 2,768 819 1,949
West Michigan 21,778,814 2,492 737 1,755
26
Jobs Supported by Office Building Operating Expenditures APPENDIX C
Total Rentable Region Square Feet Jobs Direct Jobs Indirect Jobs
Minnesota
Duluth 5,849,568 670 199 472
Minneapolis* 80,321,299 12,802 3,791 9,011
St. Paul* 28,698,381 3,966 1,174 2,791
Mississippi
Mississippi 10,565,941 1,439 500 939
Missouri
Kansas City 72,857,652 10,170 3,058 7,112
St. Louis* 75,531,488 9,321 2,803 6,518
Nebraska
Omaha 27,616,791 3,138 972 2,166
Nevada
Nevada 47,035,400 4,268 1,353 2,915
New Jersey
New Jersey 231,741,214 33,654 9,882 23,772
New Mexico
New Mexico 18,283,849 1,844 643 1,201
New York
Capital Region-Albany 26,405,419 1,909 621 1,288
Greater Buffalo 28,693,456 2,294 746 1,548
Central New York 13,499,213 1,067 347 720
Long Island 53,625,430 7,929 2,579 5,351
New York City* 528,826,198 158,312 51,481 106,830
Greater Rochester 27,799,947 1,939 631 1,309
Westchester 32,507,981 4,477 1,456 3,021
North Carolina
Greater Charlotte* 105,348,376 13,148 3,984 9,164
Raleigh-Durham* 82,010,870 8,474 2,568 5,906
Ohio
Akron 13,001,033 1,385 401 984
Columbus 53,829,976 6,880 1,993 4,887
Dayton 38,897,736 3,440 996 2,443
Greater Cincinnati 49,250,304 5,265 1,525 3,740
Greater Cleveland* 82,299,397 11,144 3,228 7,916
Toledo 12,187,812 1,352 392 961
27
APPENDIX C Jobs Supported by Office Building Operating Expenditures
Total Rentable Region Square Feet Jobs Direct Jobs Indirect Jobs
Oklahoma
Oklahoma City 32,611,284 3,231 1,057 2,173
Tulsa 30,939,256 3,305 1,081 2,223
Oregon
Portland Metro* 67,603,141 7,863 2,458 5,405
Pennsylvania
Philadelphia* 163,176,218 18,380 5,313 13,067
Pittsburgh 85,778,838 11,122 3,215 7,907
Tennessee
Chattanooga 10,796,810 1,238 387 851
Knoxville 14,265,787 1,750 547 1,203
Memphis 32,176,581 4,668 1,460 3,208
Nashville* 57,390,888 7,402 2,315 5,088
Texas
Austin* 72,607,896 16,696 4,955 11,740
Corpus Christi 6,229,308 943 280 663
Greater Dallas* 267,229,873 43,008 12,765 30,243
Fort Worth* 76,256,902 11,023 3,272 7,752
Houston* 262,954,259 49,770 14,772 34,998
San Antonio 54,941,767 9,248 2,745 6,503
Utah
Utah 131,021,337 16,645 5,054 11,591
Washington
Seattle-King County* 133,940,656 19,586 6,234 13,352
South Puget Sound 15,998,476 1,629 518 1,110
Spokane 10,600,582 1,020 325 696
Wisconsin
Wisconsin 50,459,981 6,258 1,913 4,344
State Total 6,570,913,694 1,000,891 308,840 692,051
Spill Over 398,429 40,704 357,724
US Total 6,570,913,694 1,399,319 349,544 1,049,775
Note: *Indicating metro area; calculated using state multipliers for both non-metro areas and metro areas
Note: BOMA local associations are defined by ZIP codes and the metropolitan areas conform to the U.S. Census definitions.
28
Economic Multipliers & Impact Calculations APPENDIX D
The total economic impacts of annual outlays for the operation of office buildings reflect the combination of direct outlays and the subsequent effects as these funds are circulated through the economy. In other words, re-spending these direct outlays generates additional economic activity. The total value of these combined direct and indirect values was estimated by the application of appropriate multipliers that have been calculated for each state and metropolitan area by the Bureau of Economic Analysis of the U.S. Department of Commerce, employing its Regional Input-Output Model System (RIMS II).
For this analysis, state and metropolitan area multipliers were purchased for: construction, maintenance and repair, utilities, management and services to buildings. These multipliers were weighed by their share of operating cost outlays for office buildings (Yardi® Matrix data was the source) and combined into a single series of multipliers. These aggregate multipliers (a different set for each state and metropolitan area. See Appendix E) were applied to the market data for each of the BOMA local associations to calculate the total economic impacts generated by these direct outlays.
The results of these calculations are estimates of:
(1) Output value, the total contribution to the U.S., state and metropolitan area economies.
(2) Personal earnings, new earnings realized by residents of the state or metropolitan area in which the spending occurs.
(3) The full-time, year-round jobs supported by these outlays.
The key variables governing the magnitude and significance of these economic impacts are their dollar value; the category of outlay (i.e.: construction, maintenance, etc.); the direct employment and payroll associated with the direct spending for building operations; the geographic area of analysis; and the size and complexity of the respective state economies.
The size and complexity of a state or metropolitan area’s economy determine its self-sufficiency. Larger states retain a greater share of this direct spending for building operations than smaller states. At the national level, the spillover effect adds to the magnitude of these secondary economic impacts. The degree to which the direct outlays are retained internally by the state is reflected in the respective state economic multipliers. The aggregate multipliers for office building operations are presented in Appendix E.
29
APPENDIX E Aggregate Economic Impact Multipliers for Building Operations
Alabama
Alabama 1.88 0.59 15.59
North Alabama 1.88 0.59 15.59
Alaska
Anchorage 1.64 0.54 11.90
Northwest Alaska 1.64 0.54 11.90
Arizona
Greater Phoenix* 1.94 0.63 15.19 1.97 0.63 15.10
Greater Tucson 1.94 0.63 15.19
Arkansas
Greater Little Rock 1.76 0.55 13.85
California
Inland Empire 2.01 0.64 13.08
Greater Los Angeles* 2.01 0.64 13.08 1.92 0.54 11.00
Oakland-East Bay* 2.01 0.64 13.08 1.75 0.47 9.50
Orange County 2.01 0.64 13.08
Sacramento 2.01 0.64 13.08
San Diego* 2.01 0.64 13.08 1.73 0.53 10.80
San Francisco* 2.01 0.64 13.08 1.75 0.47 9.50
Silicon Valley 2.01 0.64 13.08
Colorado
Southern Colorado 2.06 0.66 14.96
Denver Metro* 2.06 0.66 14.96 1.95 0.59 13.10
Connecticut
Greater Hartford 1.80 0.55 10.97
Southern Connecticut 1.80 0.55 10.97
District of Columbia
Washington, D.C., MSA* 1.23 0.11 2.17 1.59 0.46 10.1
Florida
Ft. Lauderdale and the Palm Beaches 1.96 0.64 16.31
Greater Tampa Bay* 1.96 0.64 16.31 1.92 0.60 15.20
Jacksonville 1.96 0.64 16.31
Miami-Dade* 1.96 0.64 16.31 1.84 0.57 14.70
Orlando* 1.96 0.64 16.31 1.79 0.53 13.6
STATE MULTIPLIERS METRO MULTIPLIERS
State Output Earnings Jobs Output Earnings Jobs (per million) (per million)
30
Aggregate Economic Impact Multipliers for Building Operations APPENDIX E
STATE MULTIPLIERS METRO MULTIPLIERS
State Output Earnings Jobs Output Earnings Jobs (per million) (per million)
Southwest Florida 1.96 0.64 16.31
Tallahassee 1.96 0.64 16.31
Georgia
Atlanta* 2.12 0.67 16.39 2.06 0.63 15.50
Hawaii
Hawaii 1.76 0.57 12.76
Idaho
Boise 1.71 0.55 14.62
Illinois
Chicago* 2.15 0.65 13.55 2.09 0.64 13.90
Peoria 2.15 0.65 13.55
Suburban Chicago 2.15 0.65 13.55
Indiana
Indianapolis* 1.94 0.59 13.62 1.95 0.60 13.80
Michiana 1.94 0.59 13.62
Iowa
Iowa 1.71 0.51 12.77
Kansas
Wichita 1.87 0.53 12.72
Kentucky
Kentucky 1.87 0.55 13.89
Louisiana
New Orleans 1.84 0.59 14.83
Shreveport 1.84 0.59 14.83
Maryland
Baltimore 1.80 0.53 11.34
Massachusetts
Boston* 1.84 0.56 11.47 1.72 0.46 9.80
Michigan
Metropolitan Detroit* 1.95 0.62 14.23 1.85 0.55 12.40
Mid-Michigan 1.95 0.62 14.23
West Michigan 1.95 0.62 14.23
31
APPENDIX E Aggregate Economic Impact Multipliers for Building Operations
STATE MULTIPLIERS METRO MULTIPLIERS
State Output Earnings Jobs Output Earnings Jobs (per million) (per million)
Minnesota
Duluth 2.01 0.63 13.48
Minneapolis* 2.01 0.63 13.48 2.00 0.60 13.80
St. Paul* 2.01 0.63 13.48 2.00 0.60 13.80
Mississippi
Mississippi 1.75 0.55 14.42
Missouri
Kansas City 1.95 0.57 13.90
St. Louis* 1.95 0.57 13.90 1.98 0.61 13.2
Nebraska
Omaha 1.77 0.55 13.37
Nevada
Nevada 1.75 0.56 13.48
New Jersey
New Jersey 1.99 0.58 11.88
New Mexico
New Mexico 1.67 0.54 14.33
New York
Capital Region-Albany 1.78 0.51 10.44
Greater Buffalo 1.78 0.51 10.44
Central New York 1.78 0.51 10.44
Long Island 1.78 0.51 10.44
New York City* 1.78 0.51 10.44 1.84 0.55 11.50
Greater Rochester 1.78 0.51 10.44
Westchester 1.78 0.51 10.44
North Carolina
Greater Charlotte* 1.99 0.62 15.29 1.98 0.58 14.80
Raleigh-Durham* 1.99 0.62 15.29 1.76 0.49 12.00
Ohio
Akron 2.04 0.63 14.39
Columbus 2.04 0.63 14.39
Dayton 2.04 0.63 14.39
Greater Cincinnati 2.04 0.63 14.39
Greater Cleveland* 2.04 0.63 14.39 1.81 0.49 11.60
Toledo 2.04 0.63 14.39
32
Aggregate Economic Impact Multipliers for Building Operations APPENDIX E
STATE MULTIPLIERS METRO MULTIPLIERS
State Output Earnings Jobs Output Earnings Jobs (per million) (per million)
Oklahoma
Oklahoma City 1.90 0.61 15.37
Tulsa 1.90 0.61 15.37
Oregon
Portland Metro* 1.83 0.56 12.94 1.92 0.60 13.10
Pennsylvania
Philadelphia* 2.04 0.61 13.13 1.98 0.59 12.40
Pittsburgh 2.04 0.61 13.13
Tennessee
Chattanooga 2.07 0.63 14.58
Knoxville 2.07 0.63 14.58
Memphis 2.07 0.63 14.58
Nashville* 2.07 0.63 14.58 2.02 0.62 14.50
Texas
Austin* 2.23 0.70 16.06 1.87 0.58 13.60
Corpus Christi 2.23 0.70 16.06
Greater Dallas* 2.23 0.70 16.06 2.11 0.65 15.10
Fort Worth* 2.23 0.70 16.06 2.11 0.65 15.10
Houston* 2.23 0.70 16.06 1.95 0.60 14.00
San Antonio 2.23 0.70 16.06
Utah
Utah 2.05 0.65 16.34
Washington
Seattle-King County* 1.88 0.59 12.81 1.77 0.53 11.70
South Puget Sound 1.88 0.59 12.81
Spokane 1.88 0.59 12.81
Wisconsin
Wisconsin 1.86 0.59 13.83
US Total 2.58 0.79 17.67
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APPENDIX F The Yardi® Matrix Definition of Operating Expenditures
OPERATING EXPENSES
Payroll
Repairs & Maintenance Self-evident
Leasing Payroll not related to repairs and maintenance and management are assumed to be for leasing.
General On-site staff payroll, including property manager and assistants.
Marketing & Advertising Costs related to advertising the property and its units, such as listing-service fees, signage and newspaper advertisements.
Repairs & Maintenance
Cleaning Cleaning and related supply costs, as well as payments to third-party providers for these services and cleaning costs.
Roads & Grounds Parking lot, garage and landscaping maintenance costs, as well as payments to third-party providers for these services
General All other repair and maintenance costs, including electrical and mechanical repair, elevator maintenance, and general building maintenance.
Administrative
Security Costs for security monitoring, security system expenses, security contracts, etc.
General General administration costs, including office supplies, postage, uniforms, training, cell phones, banking fees, travel costs, permits and licenses.
Management Fees Expenses paid under a single cost/fee account for management, not further divisible into other categories (such as advertising, or leasing).
Utilities
Electric Expenses paid to electric utility companies.
Gas Expenses paid to gas utility companies.
Water/Sewer Expenses paid to city or municipality water/sewer providers.
34
BOMA Local Associations APPENDIX G
BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY
ALABAMA
BOMA/Alabama Birmingham Counties – Autauga, Baldwin, Barbour, Bibb, Blount, Bullock, Butler, Calhoun, Chamber, Chilton, Choctaw, Clarke, Clay, Cleburne, Coffee, Conecuh, Coosa, Covington, Crenshaw, Dale, Dallas, Elmore, Escambia, Fayette, Geneva, Greene, Hale, Henry, Houston, Jefferson, Lamar, Lee, Lowdes, Macon, Marengo, Mobile, Monroe, Montgomery, Perry, Pickens, Pike, Randolph, Shelby, St. Clair, Sumpter, Talledaga, Tuscaloosa, Walker, Washington, Wilcox
BOMA/North Alabama Huntsville Alabama Counties – Cherokee, Cullman, Colbert, Dekalb, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, WinstonTennessee Counties – Franklin, Giles, Lawrence, Lincoln
ALASKA
BOMA/Anchorage Anchorage Entire State
ARIZONA
BOMA/Greater Phoenix Phoenix Maricopa County
BOMA/Greater Tucson Tucson Pima County
ARKANSAS
BOMA/Greater Little Rock Little Rock Pulaski County
BOMA/Northwest Arkansas Bentonville Counties – Benton, Boone, Carroll, Washington, Madison, Franklin, Crawford, Sebastian
CALIFORNIA
BOMA/Greater Los Angeles Los Angeles Los Angeles County
BOMA/Inland Empire Palm Springs Counties – Riverside, San Bernardino
BOMA/Oakland-East Bay Oakland Counties – Alameda, Contra Costa
BOMA/Orange County Orange County Counties – Orange
BOMA/Sacramento Sacramento Counties – Alpine, Amador, Butte, Colusa, El Dorado, Fresno, Glenn, Lassen, Madera, Mariposa, Merced, Nevada, Placer, Plumas, Sacramento, San Joaquin, Shasta, Sierra, Stanislaus, Sutter, Tehama, Tuolumne, Yolo, Yuba
BOMA/San Diego San Diego San Diego County
BOMA/San Francisco San Francisco Counties – San Mateo, Marin, Sonoma, San Francisco
BOMA/Silicon Valley San Jose Counties – Santa Clara, Santa Cruz, San Benito, Monterrey
COLORADO
BOMA/Denver Metro Denver Counties – Adams, Arapahoe, Boulder, Denver, Douglas, Jefferson
BOMA/Southern Colorado Colorado Springs Counties – El Paso, Pueblo, Teller
CONNECTICUT
BOMA/Greater Hartford Hartford Connecticut Counties – Hartford; Tolland; New Haven County municipalities of Meridien, Wallingford, and North Haven; Middlesex County municipality of CromwellMassachusetts Counties – Hampden
BOMA/Southern Connecticut
Fairfield, New Haven Counties – Fairfield County; New Haven County municipalities of Milford, West Haven, New Haven, and East Haven
35
APPENDIX G BOMA Local Associations
BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY
D.C. AREA
BOMA/Metropolitan Washington (AOBA)
Washington, D.C. District of Columbia; Maryland Counties – Montgomery, Prince George’sVirginia Counties – Arlington, Clarke, Culpepper, Fairfax, Fauquier, Frederick, Loudoun, Prince William, Shenandoah, Stafford, Rappahannock, WarrenVirginia Independent Cities – Alexandria, Fairfax, Falls Church
FLORIDA
BOMA/Ft. Lauderdale and the Palm Beaches
Fort Lauderdale Counties – Broward, Palm Beach, Martin
BOMA/Jacksonville Jacksonville Counties – Alachua, Baker, Bradford, Clay, Duval, Flagler, Marion, Nassau, Putnam, St. Johns, Union
BOMA/Miami-Dade Miami Counties – Dade, Monroe
BOMA/Orlando Orlando Counties – Orange, Osceola, Seminole, Brevard, Lake, Volusia
BOMA/Greater Tampa Bay Tampa Counties – Hillsborough, Polk, Pasco, Pinellas, Manatee, Sarasota
BOMA/Tallahassee Tallahassee Counties – Leon, Gadsen, Wakulla, Jefferson
GEORGIA
BOMA/Georgia Atlanta Entire State
HAWAII
BOMA/Hawaii Honolulu Entire State
IDAHO
BOMA/Boise Boise Idaho Counties – Arco, Ada, Adams, Blaine, Canyon, Cassia, Custer, Camas, Elmore, Gem, Gooding, Idaho, Minidoka, Owyhee, Payette, Twin Falls, Valley, WashingtonOregon Counties – Baker, Enterprise, Harper, Huntington, Joseph, Junaura, La Grande, Malheur, Nyssa, Ontario, Richland, Union, Unity, Wallowa
ILLINOIS
BOMA/Chicago Metropolitan Chicago – Central Business District
Chicago City (please note that this is just Chicago City—The rest of Cook County is in Suburban Chicago)
BOMA/Peoria Peoria Counties – Peoria, Woodford, Marshall, Stark, Fulton, Tazewell, Knox, Sangamon, Logan, McLean, Macon, LaSalle, Henry, Champaign
BOMA/Suburban Chicago Chicago – Suburban Counties – all of Cook County outside of Chicago City limits, DuPage, Will, Kankakee, Lake, Kane, Kendall, McHenry, DeKalb
INDIANA
BOMA/Indianapolis Indianapolis Counties – Bartholomew, Boone, Brown, Delaware, Grant, Hamilton, Hancock, Hendricks, Howard, Johnson, Madison, Marion, Monroe, Putnam, Shelby, Tippecanoe, Tipton
BOMA/Michiana South Bend Indiana Counties – St. Joseph, LaPorte, Porter, Starke, Marshall, Fulton, Kosciusko, Elkhart, LaGrange
Michigan Counties – Berrien, Cass, St. Joseph
IOWA
BOMA/Iowa Des Moines Entire State
36
BOMA Local Associations APPENDIX G
BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY
KANSAS
BOMA/Wichita Wichita Counties – Cowley, Butler, Sedgwick, Greenwood, Dickinson, Reno, Barber, McPherson, Rice, Harvey, Sumner
KENTUCKY
BOMA/Kentucky Louisville Entire State, with the exception of Boone, Kenton, and Campbell Counties (these are in Cincinnati’s territory)
LOUISIANA
BOMA/Shreveport Shreveport Parishes – Caddo
MARYLAND
BOMA/Baltimore Baltimore Counties – Anne Arundel, Baltimore, Carroll, Frederick, Harford, HowardIndependent Cities – Baltimore City
MASSACHUSETTS
BOMA/Boston Boston Counties – Suffolk, Middlesex, Norfolk, Worcester, Plymouth, Bristol
MICHIGAN
BOMA/Metro Detroit Detroit Counties – Lapeer, Livingston, Macomb, Monroe, Oakland, St. Clair, Wayne, Washtenaw
BOMA/Mid-Michigan Lansing Counties – Clinton, Eaton, Gratiot, Ingham, Ionia, Mont Calm, Shiawassee
BOMA/West Michigan Grand Rapids Counties – Allegan, Kalamazoo, Kent, Muskegon, Ottawa
MINNESOTA
BOMA/Duluth Duluth Counties – St. Louis
BOMA/Greater Minneapolis Minneapolis Counties – Anoka, Hennepin
BOMA/St. Paul St. Paul Counties – Ramsey, Washington
MISSISSIPPI
BOMA/Mississippi Jackson Entire State
MISSOURI
BOMA/Kansas City Kansas City Missouri Counties – Cass, Clay, Jackson, Platte, RayKansas Counties – Johnson, Leavenworth, Wyandotte
BOMA/St. Louis St. Louis Missouri Counties – Crawford, Franklin, Gasconade, Iron, Jefferson, Lincoln, Madison, Montgomery, Pike, St. Charles, St. Francois, St. Genevieve, St. Louis, Warren, WashingtonIndependent Cities – St. LouisIllinois Counties – Bond, Calhoun, Clinton, Fayette, Greene, Jefferson, Jersey, Macoupin, Madison, Montgomery, Marion, Monroe, Montgomery, Perry, Randolph, St. Clair, Washington
NEBRASKA
BOMA/Omaha Omaha Counties – Douglas
NEVADA
BOMA/Nevada Las Vegas Entire State
NEW JERSEY
BOMA/New Jersey Newark Counties – Bergen, Essex, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren
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BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY
NEW MEXICO
BOMA/New Mexico Albuquerque Entire State
NEW YORK
BOMA/Capital Region- Albany
Albany Counties – Albany, Columbia, Fulton, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington
BOMA/Greater Buffalo Buffalo Counties – Allegany, Cattaraugus, Chautauqua, Erie, Niagara, Orleans, Wyoming
BOMA/Central New York Syracuse Counties – Cayuga, Cortland, Madison, Onondaga, Oswego, Seneca
BOMA/Greater Rochester Rochester Counties – Livingston, Monroe, Ontario
BOMA/Long Island Long Island Counties – Nassau, Suffolk
BOMA/New York New York City – All Boroughs
Counties – Bronx, Kings, New York, Queens, Richmond
BOMA/Westchester White Plains Counties – Westchester, Putnam, Dutchess, Rockland, Orange
NORTH CAROLINA
BOMA/Greater Charlotte Charlotte North Carolina Counties – Alexander, Alleghany, Ashe, Avery, Buncombe, Burke, Cabarrus, Caldwell, Catawba, Cherokee, Clay, Cleveland, Davie, Davidson, Forsyth, Gaston, Graham, Guilford, Haywood, Henderson, Iredell, Jackson, Lincoln, McDowell, Macon, Madison, Mecklenburg, Mitchell, Polk, Randolph, Rockingham, Rowan, Rutherford, Stanly, Stokes, Surry, Swain, Transylvania, Union, Watauga, Wilkes, Yadkin, YancySouth Carolina Counties – Entire State
BOMA/Raleigh-Durham Raleigh-Durham Counties – Alamance, Anson, Beaufort, Bertie, Bladen, Brunswick, Camden, Carteret, Caswell, Chatham, Chowan, Columbus, Craven, Cumberland, Currituck, Dare, Duplin, Durham, Edgecombe, Franklin, Gates, Granville, Greene, Halifax, Harnett, Hertford, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, Nash, New Hanover, Northampton, Onslow, Orange, Pamlico, Pasquotank, Pender, Perquimans, Person, Pitt, Richmond, Robeson, Sampson, Scotland, Tyrrell, Vance, Wake, Warren, Washington, Wayne, Wilson
OHIO
BOMA/Akron Akron Counties – Summit, Stark, Portage, Wayne
BOMA/Greater Cincinnati Cincinnati Ohio Counties – Hamilton, Clermont, and the southern portions of Butler and Warren Counties in Ohio (the northern portions of both counties are in Dayton’s territory, with the north/south boundary being Route 63.)Kentucky Counties – Boone, Kenton, CampbellIndiana Counties – Dearborn, Franklin
BOMA/Greater Cleveland Cleveland Counties – Cuyahoga, Geauga, Lake, Lorain
BOMA/Columbus Columbus Counties – Champaign, Delaware, Fairfield, Franklin, Licking, Madison, Pickaway, Union
BOMA/Dayton Dayton Counties – Clark, Clinton, Darke, Greene, Miami, Montgomery, Preble, and the northern portions of Butler and Warren Counties (the southern portions of each county are in Greater Cincinnati’s territory, with the north/south boundary being Route 63)
BOMA/Toledo Toledo Counties – Hancock, Lucas, Wood
APPENDIX G BOMA Local Associations
38
BOMA Local Associations APPENDIX G
BOMA LOCAL PRIMARY MARKET LOCAL ASSOCIATION TERRITORY
OKLAHOMA
BOMA/Oklahoma City Oklahoma City Counties – Cleveland, Oklahoma
BOMA/Tulsa Tulsa Counties – Cherokee, Craig, Creek, Delaware, Mayes, Muskogee, Nowata, Okmulgee, Osage, Pawnee, Rogers, Tulsa, Wagoner, Washington
OREGON
BOMA/Oregon Portland Entire State
PENNSYLVANIA
BOMA/Philadelphia Philadelphia Pennsylvania Counties – Berks, Bucks, Chester, Delaware, Montgomery, PhiladelphiaDelaware Counties – New Castle, KentNew Jersey Counties – Atlantic, Burlington, Camden, Gloucester
BOMA/Pittsburgh Pittsburgh Counties – Allegheny, Armstrong, Beaver, Bedford, Butler, Cambria, Clarion, Erie, Greene, Fayette, Jefferson, Lawrence, Mercer, Somerset, Washington, WestmorelandWest Virginia Counties – Hancock, Brook, Ohio, Marshall
TENNESSEE
BOMA/Chattanooga Chattanooga Counties – Bledsoe, Bradley, Hamilton, McMinn, Meigs, Polk, Rhea, Sequatchie
BOMA/Knoxville Knoxville Counties – Anderson, Blount, Knox
BOMA/Memphis Memphis Counties – Shelby
BOMA/Nashville Nashville Counties – Cheatham, Davidson, Dickson, Robertson, Rutherford, Sumner, Williamson, Wilson
TEXAS
BOMA/Austin Austin Counties – Travis
BOMA/Corpus Christi Corpus Christi Counties – Nueces
BOMA/Greater Dallas Dallas Counties – Dallas, Collin, Grayson, Ellis, Kaufman, Van Zandt
BOMA/Fort Worth Fort Worth Counties – Tarrant, Denton, Wise, Lubbock, Wichita
BOMA/Houston Houston Counties – Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Waller
BOMA/San Antonio San Antonio Counties – Bexar
UTAH
BOMA/Utah Salt Lake City Entire State
WASHINGTON
BOMA/Seattle-King County Seattle Counties – King
BOMA/Spokane Spokane Counties – Spokane
BOMA/South Puget Sound Tacoma Counties – Pierce, Thurston, Kitsap
WISCONSIN
BOMA/Wisconsin Milwaukee Entire State
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