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 | May 14, 2019
Sail on, Royal Caribbean: HOK-designed headquarters celebrates cruise ship industry
The building’s design is inspired by the design of its fleet of cruise ships—with flowing lines.
Mixed-Use | May 2, 2019
A series of green bridges will connect these two towers in Shenzhen, China
Steven Holl Architects designed the project.
Office Buildings | May 2, 2019
HOK’s latest study takes a new look at tech workplaces
The report provides insight into the relative importance of such things as amenities and occupant health for recruiting and retaining workers.
Office Buildings | Apr 25, 2019
Study: Half of corporate and government offices offer wellness programs
Nearly 30% of worksites offer programs for physical activity and fitness, according to the CDC.
Office Buildings | Apr 8, 2019
It’s time for office amenities to get to work
Amenities with the greatest impact on effectiveness and experience are those that directly support the work needs of individual employees and their teams.
Office Buildings | Apr 8, 2019
Denver office building features 13,000 sf green roof
Dynia Architects designed the building.
Office Buildings | Apr 5, 2019
2019 trends in the workplace
From retention and career advancement to the ethics of inclusion and diversity, these five trends will play a major role this year in design, strategic planning and workplace development.
Industrial Facilities | Mar 10, 2019
The burgeoning Port San Antonio lays out growth plans
Expansions would accommodate cybersecurity, aerospace, and defense tenants, and help commercialize technologies.
Office Buildings | Mar 6, 2019
How to leverage design and culture’s two-way relationship for better workplaces
The relationship between workplace design and company culture isn’t all that different from a tango.
Office Buildings | Feb 15, 2019
A healthier perspective: Office developers bet on wellness amenities to attract top-notch tenants
Owners and developers are driving demand for wellness features and practices—active stairways, biophilia, enhanced air quality, etc.—as one more way draw tenants.