The office sector in the U.S. is still reeling, as funds remain hard to come by and large leasing deals being 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 pre-pandemic levels.<\/p>\n\n\n\n
With increased interest rates and low demand developers delivered only 27.8 million square feet of space, marking a 19 percent year-over-year decrease, while12.1 million square feet broke ground in the U.S. The life science sector returned to its historical averages in 2024, accounting for just 9 percent of the total office square footage in the first half of the year.<\/p>\n\n\n\n
The following list shows the leading five markets for office completions in the first half of the year, ordered by total square footage added to each metro\u2019s inventory. These five office markets, with three of them located in the Western region, contributed with a total of 11.5 million square feet to the national office inventory, accounting for 41 percent of all new office space that came online.<\/p>\n\n\n