Office Conversions Set To Outpace New Construction in 2025
More than 23M square feet of office space is planned for conversion or demolition this year, exceeding the amount of new construction for the first time in years, according to CBRE. By the end of this year, 23.3 million square feet of space is slated for demolition or conversion to other uses, according to Conversions & Demolitions Reducing U.S. Office Supply, CBRE’s analysis of office-market activity across the largest 58 U.S. markets. In comparison, developers are projected to complete construction of 12.7 million square feet of office space in those markets in 2025. Construction completions have steadily declined from 51.2 million square feet in 2018 to 25 million last year and the anticipated 12.7 million this year. Meanwhile, conversions alone – factoring out demolition – have increased from 5.5 million square feet in 2018 to an anticipated 12.8 million square feet this year. Developers currently have another 81 million square feet of office space in the pipeline for conversion to other uses in the coming years. Top 10 markets at: Office Conversions Set To Outpace New Construction In 2025