US EditionMore Office Space Is Being Removed than Added for the First Time in at Least 25 Years
- In 2025, San Francisco will see a decline in office space as the amount of offices being converted or demolished surpasses the volume of new office developments, marking a shift not seen in at least 25 years.
- This shift follows years of high office vacancies driven by the pandemic and remote-work culture, although recent leasing activity is rising due to tech and AI company demand.
- AI firms like OpenAI and Databricks have expanded in San Francisco, leasing millions of square feet and attracting venture capital, while vacancy rates remain high at 35.4 percent.
- CBRE analysts state that the office footprint shrinkage and conversions will lower vacancy rates and boost neighborhood vibrancy despite high construction costs, with 85 million square feet slated for conversion nationwide.
- The reduction in obsolete office space and renewed AI-driven demand suggest a stabilizing market, but challenges remain for San Francisco’s public safety and infrastructure, impacting future growth.
13 Articles
13 Articles
At long last, Downtown’s best office buildings are booming with activity
Midtown’s best buildings are signed for. Now, even second- and third-rate offices are fast disappearing from the market, as 5.5 million square feet of workspace is converted for residential use. But there’s a big winner from the crunch: Lower Manhattan. “Midtown has become incredibly tight for large tenants looking for quality space,” said Jonathan Mazur,...
Office Conversions and Demolitions Will Exceed New Construction in 2025 For the First Time in Several Years
CBRE found more than 23 million sq. ft. of office space planned for conversion or demolition this year, which exceeds the amount of new construction. More office space will be removed from the U.S. market this year than added to it for the first time since at least 2018 and likely longer, providing another indicator of the market’s stabilisation and nascent recovery, according to a new report from CBRE. CBRE’s analysis of office-market activity …
U.S. Office Market Shrinks for First Time in 25 Years
The U.S. office real estate market is undergoing a historic shift, one that could signal the beginning of a long-awaited recovery for a sector battered by the seismic changes brought on by the COVID-19 pandemic. For the first time in at least 25 years, more office space is being removed from the market than is being added, a trend that industry experts believe could help rebalance supply and demand dynamics in a sector plagued by oversupply and …
More Office Space Being Removed Than Added For First Time in At Least 25 Years
More office space in the U.S. is being removed than added for the first time in at least 25 years. New data from CBRE Group shows that across the 58 largest US markets, 23.3 million square feet of office space is slated for demolition or conversion by year-end, while developers will complete just 12...
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