flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Believe it or not, there could be a shortage of office space in the years ahead

Office Buildings

Believe it or not, there could be a shortage of office space in the years ahead

Construction of Class A properties has slowed dramatically


By Peter Fabris, Contributing Editor | December 11, 2023
Believe it or not, there could be a shortage of office space in the years ahead - Image by StockSnap from Pixabay
Image by StockSnap from Pixabay

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 | Nov 15, 2016

Under Armour unveils phase one of 50-acre Baltimore headquarters

The campus will be located in Baltimore’s $5.5 billion Port Covington redevelopment project.

Office Buildings | Nov 14, 2016

Media’s adaptive shift: Converged environments

The converged environment is a live-streaming workplace, a zone where news and content flow continuously and speed to market is everything.

High-rise Construction | Nov 3, 2016

Two identical Kohn Pederson Fox office towers may be headed to Wacker Drive

Murphy Development Group is looking for tenants for the $800 million project.

Office Buildings | Oct 26, 2016

The power of office amenities in the workplace

With a continued focus on providing more with less, companies across all industries are continually driving their workers to increase efficiency and productivity—to get product and services to market faster and cheaper, writes LPA's Karen Thomas.

High-rise Construction | Oct 5, 2016

Plans for Hudson Yards skyscraper from Bjarke Ingels have officially been filed

The 65-story tower will be primarily office space and has an estimated development cost of $3.2 billion

Office Buildings | Sep 30, 2016

How to choose the right amenities for your office

No matter how lavish the amenities, they’ll prove ineffective in making any kind of positive impact if they don’t align to a company’s culture and the characteristics that make an organization unique, write Gensler’s Lena Kitson and Kimberly Foster.

High-rise Construction | Sep 23, 2016

A massive redevelopment in Tokyo reunites developer and architect

Mitsui Fudosan and SOM join forces to create OH-1, a mixed-use complex with a prominent public square.

Office Buildings | Sep 22, 2016

‘Floating’ triangular glass building from Foster + Partners breaks ground in Copenhagen

The glass building provides the illusion of floating above a stone plinth.

boombox1
boombox2
native1

More In Category



Sustainable Design and Construction

Northglenn, a Denver suburb, opens a net zero, all-electric city hall with a mass timber structure

Northglenn, Colo., a Denver suburb, has opened the new Northglenn City Hall—a net zero, fully electric building with a mass timber structure. The 32,600-sf, $33.7 million building houses 60 city staffers. Designed by Anderson Mason Dale Architects, Northglenn City Hall is set to become the first municipal building in Colorado, and one of the first in the country, to achieve the Core certification: a green building rating system overseen by the International Living Future Institute.


MFPRO+ News

San Francisco unveils guidelines to streamline office-to-residential conversions

The San Francisco Department of Building Inspection announced a series of new building code guidelines clarifying adaptive reuse code provisions and exceptions for converting office-to-residential buildings. Developed in response to the Commercial to Residential Adaptive Reuse program established in July 2023, the guidelines aim to increase the viability of converting underutilized office buildings into housing by reducing regulatory barriers in specific zoning districts downtown. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021