In what is likely a historic first, the amount of office space in the U.S. is forecast to decline in 2023, according to Jones Lang LaSalle.
This would be the first net decline according to data going back to 2000, JLL says, and it’s likely the first decline ever.
National office inventory is believed to have never declined in the past, though it may have come close to doing so during the Great Depression.
A dearth of new construction and a large amount of office space being repurposed or destroyed accounts for the project decline this year. Less than five million sf of new office space has broken ground in the U.S. this year, while 14.7 million sf has been removed.
The post-pandemic work-from-home trend and the increased costs of borrowing have dampened the office market. Office delinquencies are on the rise, and property values in the office sector are falling.
Recent analysis from market research firm Trepp estimated average office building valuation declines from 52% for those constructed after 2000 to 60% for pre-1950 buildings. This sets “a gloomy tone” for the future office market, Trepp says.
Related Stories
| Sep 23, 2014
Cloud-shaped skyscraper complex wins Shenzhen Bay Super City design competition
Forget the cubist, clinical, glass and concrete jungle of today's financial districts. Shenzhen's new plan features a complex of cloud-shaped skyscrapers connected to one another with sloping bridges.
| Sep 23, 2014
Designing with Water: Report analyzes ways coastal cities can cope with flooding
The report contains 12 case studies of cities around the world that have applied advanced flood management techniques.
| Sep 22, 2014
4 keys to effective post-occupancy evaluations
Perkins+Will's Janice Barnes covers the four steps that designers should take to create POEs that provide design direction and measure design effectiveness.
| Sep 22, 2014
Sound selections: 12 great choices for ceilings and acoustical walls
From metal mesh panels to concealed-suspension ceilings, here's our roundup of the latest acoustical ceiling and wall products.
| Sep 15, 2014
Ranked: Top international AEC firms [2014 Giants 300 Report]
Parsons Brinckerhoff, Gensler, and Jacobs top BD+C's rankings of U.S.-based design and construction firms with the most revenue from international projects, as reported in the 2014 Giants 300 Report.
| Sep 15, 2014
Argentina reveals plans for Latin America’s tallest structure
Argentine President Cristina Fernández de Kirchner announces the winning design by MRA+A Álvarez | Bernabó | Sabatini for the capital's new miexed use tower.
| Sep 12, 2014
Armstrong first in Pennsylvania to earn LEED Platinum recertification from USGBC
The Armstrong facility is the first building in Pennsylvania and among only 17 buildings globally to achieve recertification at the highest level possible under USGBC’s LEED-EBOM program.
| Sep 9, 2014
Using Facebook to transform workplace design
As part of our ongoing studies of how building design influences human behavior in today’s social media-driven world, HOK’s workplace strategists had an idea: Leverage the power of social media to collect data about how people feel about their workplaces and the type of spaces they need to succeed.
| Sep 7, 2014
Ranked: Top state government sector AEC firms [2014 Giants 300 Report]
PCL Construction, Stantec, and AECOM head BD+C's rankings of the nation's largest state government design and construction firms, as reported in the 2014 Giants 300 Report.
| Sep 7, 2014
Behind the scenes of integrated project delivery — successful tools and applications
The underlying variables and tools used to manage collaboration between teams is ultimately the driving for success with IPD, writes CBRE Healthcare's Megan Donham.