October 1, 2026

Keeping Washington's buildings running is big business

Photo by Cameron Lannigan [enlarge]

In Seattle and King County, there are approximately 602 million square feet of commercial real estate, generating more than $10.3 billion in total economic output.

The day-to-day operation and maintenance of commercial buildings supports nearly 72,000 jobs and contributes billions of dollars to Washington's economy, according to a new study released by the Building Owners and Managers Association (BOMA) International.

In Washington state, commercial building operations support 71,800 jobs, contribute $7.6 billion to the state's gross domestic product, and generate $4.9 billion in personal earnings, the report found. The analysis covers nearly 676 million square feet of commercial property statewide.

The regional findings are part of BOMA's “2026 Market Study: The Economic Impact of U.S. Commercial Real Estate,” which examined commercial building operations across 79 metropolitan markets nationwide.

The report highlights an often-overlooked segment of the commercial real estate industry: the extensive network of workers and businesses responsible for keeping office, retail and industrial buildings operating.

“Commercial buildings are economic engines, supporting businesses, jobs and communities across the country,” said Kjersten Jaeb, chair and chief elected officer of BOMA International. “Every building relies on an extensive network of professionals, service providers and businesses to keep it running safely and efficiently, from building managers, contractors and suppliers to maintenance and repair companies, utilities, insurers and security providers.”

Nationally, the study found that operating and maintaining office, retail and industrial properties generates $609.9 billion in annual economic output, supports 3.9 million jobs, contributes $344.4 billion to U.S. GDP, and creates $219.4 billion in personal earnings.

Researchers found that for every dollar spent on building operations, $2.22 in total economic output is generated through direct, indirect and induced economic activity.

LOCAL IMPACT

Commercial buildings have an economic impact beyond just the businesses operating inside them. Significant economic activity is generated by their operation and upkeep, said Rod Kauffman, president and CEO of BOMA Greater Seattle. “Buildings require an extensive network of people and businesses to keep them safe, efficient and operational from property managers and building engineers to contractors, utilities, security providers and suppliers.”

Seattle's commercial real estate footprint has expanded significantly over the past 10 years. The BOMA study found that office inventory in the Seattle market increased from approximately 47 million square feet in 2016 to more than 86 million square feet today. Other commercial property sectors, including industrial, medical, research, biotech and retail, have expanded as well.

Photo courtesy BOMA International

Commercial buildings have an economic impact beyond just the businesses operating inside them.

Kauffman told the DJC that while economic impact is concentrated in Seattle and King County, it shouldn't be viewed as a downtown high-rise story. In Seattle and King County, there are approximately 602 million square feet of commercial real estate, generating more than $10.3 billion in total economic output. That includes approximately $6.4 billion in GDP, $4.2 billion in earnings, and 58,000 jobs supported.

Kauffman said that operating commercial properties requires an extensive network of property managers, building engineers, contractors, maintenance and repair companies, utilities, security providers and other suppliers. And the dollars spent operating those properties continue circulating through the regional economy.

KEEPING BUILDINGS MAINTAINED

In recent years, work-from-home work has altered traditional office occupancy in our area. In downtown Seattle, the office vacancy rate sits at between approximately 35.8% to 37%, according to industry reports.

Kauffman points out that even in a building that has 50% occupancy, managers still have to run the building as if it was full tenancy.

That includes operating HVAC systems and elevators, maintaining security, making repairs and preventative maintenance, and performing inspections and compliance testing.

Many workers have gone to a hybrid format, with people coming into a building on different days of the week. For example, there may only be seven or eight people in a 30-person office for each day of the week. Even then, normal building operations have to be maintained.

Kauffman said that, to save expenses, managers will sometimes re-bid service contracts or reduce janitorial services, if a vacancy is high enough. But cuts are rare, he said, as buildings still need a certain level of staffing whether they're full or not.

“As the study indicates, even during periods of higher vacancy, commercial buildings continue to employ people, purchase services and support businesses throughout the local economy,” Kauffman said.

LIFE SCIENCES SECTOR

The report includes a separate analysis of the life sciences real estate sector. Life sciences properties combine features of office and industrial buildings, requiring specialized HVAC and laboratory ventilation systems as well as large-scale utility and mechanical infrastructure.

In 2025, spending to operate life sciences buildings in the markets studied supported 22,357 jobs, generated $1.4 billion in labor income and contributed $2.2 billion to GDP, resulting in $3.7 billion in total economic output.

In the Greater Seattle market, operations of life sciences buildings generate approximately $159.5 million in economic output and support more than 900 jobs.

The life sciences sector has been undergoing a period of adjustment after several years of rapid growth. According to the study, new development is increasingly shifting toward projects with committed tenants and pre-leasing agreements rather than speculative construction.

CONSTRUCTION TRENDS

Along with measuring the economic impact of operating and maintaining commercial buildings, the BOMA study examines construction trends across the office, retail and industrial sectors, offering a larger look at changes in the commercial real estate landscape.

One big shift BOMA notes is the in the rapid growth of data center development. BOMA says that federal statistics list data centers as private office construction, which affects overall office construction figures.

In 2025, data centers accounted for about $41.2 billion, or nearly 46%, of the more than $90 billion in private office construction nationally, BOMA says. A decade earlier, they were less than 5%.

Industrial construction remained historically strong in 2025, with warehouse and manufacturing projects totaling about $274.2 billion. Although that was down 7.9% from 2024, investment was still more than double the 2020 level and marked the third-highest annual total on record.

Retail construction totaled about $47.1 billion in 2025, with activity picking up during the first three months of 2026. Meanwhile, the U.S. life sciences real estate market continued to normalize after several years of rapid growth.

The study was conducted by the Business Research Division at the Leeds School of Business at the University of Colorado Boulder on behalf of BOMA International. Researchers used commercial real estate data from CoStar and operating expense information from the National Council of Real Estate Investment Fiduciaries to calculate economic impacts associated with building operations.

The analysis covers office, retail and industrial properties across 79 BOMA markets and includes a separate life sciences sector analysis in 17 markets where sufficient data was available.

Read the full market study here: https://boma.org/2026-market-study/