The 2010s will be remembered as a period of all-round economic growth, including in office construction. In particular, the last decade set the stage for several landmark office building projects, from the glitz of One World Trade Center and Hudson Yards to the sprawling corporate hubs in tech corridors.
However, COVID-19 brought unprecedented change to the office market and its construction projects, and the office pipeline was doubly challenged by the pandemic. First, stay-at-home orders meant that, in many states, construction was temporarily halted. Then, working from home became widespread and, even now, a return to the office seems still distant for many.
As a result, many companies are reevaluating their office space leases, which will inevitably manifest in office building construction. So, we looked at data provided by CommercialEdge on the amount of office space in the pipeline for 2021 and beyond, as well as the largest office building completions in 2020. And, what we found is that, while Manhattan was home to the largest office building completed last year, it may soon be overtaken in deliveries by other markets — at least in the short-term.
Here are some key takeaways from our report:
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Atlanta is expected to be the 7th most active office market in the country this year, with 4.1 million square feet of space being scheduled for delivery in 2021.
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Atlanta also boasts the biggest office delivery in a single project this year: State Farm at Park Center – Buildings 2 & 3, expected to be completed in Q1, will add almost 1.8 million square feet of office space to the market.
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Nationally, Los Angeles takes the 1st place for office deliveries this year, with 6.8 million square feet of space scheduled for completion. Regarding all office building construction, Manhattan holds the largest total pipeline, with 18.9 million square feet currently in the works.
For more insights, you can find the full report here: http://commercialcafe.