November 25, 2007

Study shows Commercial Real Estate added $1.5B to Local Economy Last Year

The Middle Tennessee chapter of the National Association of Industrial and Office Properties touted its latest study of commercial real estate and its impact on the economy.
Tom Harwell, a principal with Eakin Partners LLC and a top NAIOP official, at a news conference Tuesday at Roundabout Plaza said that commercial real estate added $1.5 billion to the regional economy in 2006 .
The industry of office, retail and industrial real estate created 35,000 jobs, $1.1 billion in earnings and an overall impact of $4.9 billion in the 10-county area around Nashville, Harwell said.
To highlight commercial real estate's impact, Harwell said the NAIOP report found that such properties make up $294.8 million in annual property taxes alone in Davidson County, while those properties only make up 9.5 percent of taxable Davidson County properties.
Harwell said that annual revenue was half of Davidson County's yearly public schools budget.
Overall, the 277.4 million square feet of commercial real estate generated tax revenues that make up 47.7 percent of the Nashville region's property tax collection, the study found.
The properties have an assessed value of $11.9 billion.
Mayor Karl Dean attended the news conference, and said he recognizes the contribution of commercial real estate to the region's economy and its tax coffers.
Harwell is the president-elect of the local NAIOP, replacing Axson West of Southeast Venture.
Students from Vanderbilt University's Owen Graduate School of Management helped collect data for the study.
The Nashville Business Journal - November 2008

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