Office Space Real Estate: A Looming Shortage
Originally Published 2 years ago — by CNBC
Real estate intelligence company CoStar Group is warning of an impending shortage of office space in the US, despite the current market being described as apocalyptic. As leases approach expiration and companies return to in-office work, there is increasing competition for Class A commercial space. Newly constructed buildings aged 0-3 years are in high demand, attracting over 175 million square feet of net new occupancy since 2020. However, construction has slowed, and the supply of office space will not be able to meet the demand. This shortage will particularly affect premium office space, which historically has been in high demand even during economic downturns.
