With work-from-home firmly established, many real estate analysts predict a dramatic reduction in office space leasing and plummeting property values.
But the high-end of the office segment might actually be headed for a shortage, according to real estate intelligence company CoStar Group. This counterintuitive trend is due to a drastic drop in construction of elite Class A properties.
Despite the overall drop in occupied office space, buildings aged 0-3 years are doing well. They have attracted an average of 12.7 million sf per quarter since the beginning of 2020. By comparison, the quarterly average from 2011-2019 for similar properties was 11.7 million sf.
Office construction has slowed dramatically this year. Less than 30 million sf has broken ground in 2023, making it the lowest year for construction starts since 2011. If this trend continues, the type of space most in demand—newly constructed units—will have the shortest supply.
Related Stories
Office Buildings | Mar 27, 2017
New York warehouse to become an office mixing industrial and modern aesthetics
The building is located in West Chelsea between the High Line and West Street.
Office Buildings | Mar 24, 2017
Brookfield expands its ‘office of the future’ brand to Houston
The developer engaged four design firms to come up with unique suites it will market under its DesignHive label.
Office Buildings | Mar 21, 2017
Fruit company’s HQ acts as an oasis among surrounding industrial processing yards
Graham Baba Architects designed the project around a central, landscaped courtyard.
Office Buildings | Mar 20, 2017
The new workplace: More than a generational issue
Today’s workplace requires designers and employers to look holistically at the organization’s culture, its criteria for success, and its place in the world.
Office Buildings | Mar 7, 2017
Large creative office projects generate staggering returns for property investors
A new Transwestern report examines the adaptive reuse trend across the U.S.
Office Buildings | Mar 2, 2017
White paper from Perkins Eastman and Three H examines how design can inform employee productivity and wellbeing
This paper is the first in a planned three-part series of studies on the evolution of diverse office environments and how the contemporary activity-based workplace (ABW) can be uniquely tailored to support a range of employee personalities, tasks and work modes.
Office Buildings | Mar 2, 2017
Office renovation and addition give new life to a section of Huntsville, Ala.
The newly opened Freedom Center, near Redstone Arsenal, includes a 10,000-sf conference center.
Office Buildings | Feb 24, 2017
The sun’s rays helped shape this Studio Gang-designed NYC tower
Solar Carve Tower advances Studio Gang’s ‘solar carving’ design strategy.
Office Buildings | Feb 16, 2017
Bjarke Ingels Group wins competition to design S.Pellegrino Flagship Factory
The factory will immerse employees and visitors in nature from all sides.
Industry Research | Feb 15, 2017
Putting workers first should be every employer’s priority
The latest Sodexo report on workplace trends explores 10 factors that are impacting the global work environment.
