California, Texas, and New York stand to gain the most from President Biden's $1.2 trillion infrastructure package, according to a new analysis from Newmark. 

The Golden State is predicted to receive $45 billion in funding from the Infrastructure Investments and Jobs act, followed by Texas at $35 billion and New York at $27 billion. Overall, the legislation, which is funded by repurposed, unspent monies and new revenue, will fund previously-approved infrastructure projects and programs. It also includes an estimated $550 billion in new investment for projects ranging from hard infrastructure to water, power, and internet infrastructure.

Newmark cites Urban Land Institute data that indicates that the quality of infrastructure—particularly roads, bridges, and public transit—is a key driver of real estate development decisions. With the majority of IIJA funds being directed to the transportation sector, the legislation has "myriad long-term implications" for the industrial asset class. The largest allocation of funds ($110 billion) will be pushed toward improving roads and bridges, and "once transportation improvement or expansion projects have been officially identified, land for industrial development as well as existing industrial properties in the vicinity may increase in value," the report states.