Office Development Jibes with Demand Uptick
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Quarterly deliveries of new office product have averaged between 18 million and 20 million sf.
IRVINE, CA—Oversupply has become a concern in certain markets for certain sectors, such as lodging in New York City. By and large, though, office isn’t facing the same risk, with a new Lee & Associates report on the sector saying that new construction nationally has been “surprisingly consistent.”
The services firm reports that deliveries of office product have come in between 18 million and 20 million square feet nationwide over each of the past four quarters. In Q3, for instance, 321 buildings totaling 18.8 million square feet were added to the US office base, which now stands at nearly 10.6 billion square feet, with another 139.7 million square feet getting underway by quarter’s end. “Given vacancy’s gradual and consistent decline, it appears that new construction is balanced well with overall leasing activity,” according to the report…
Office Development Jibes with Demand Uptick
