Top 5 Markets for Office Deliveries
The U.S. office sector is still reeling, as funds remain hard to come by and large leasing deals are few and far between. The construction pipeline has decreased significantly, with 76.9 million square feet of office space underway as of June. The number represents only 1.1 percent of existing office inventory, showing that demand for office space is unlikely to return to prepandemic levels. Below, we’re highlighting the top metros for office deliveries at a time when office development is stalling.
With increased interest rates and low demand, developers delivered only 27.8 million square feet, marking a 19 percent year-over-year decrease, while 12.1 million square feet broke ground. The life science sector returned to historical averages in 2024, accounting for just 9 percent of the total office square footage in the first half of the year.
The following list shows the leading five markets for office completions in the first half of the year, ordered by total square footage added. These five office markets, with three of them located in the Western region, contributed a total of 11.5 million square feet to the national office inventory, or 41 percent of all new space to come online.
