US Edition
More Office Space Is Being Removed than Added for the First Time in at Least 25 Years
- In 2025, San Francisco will see a decline in office space as the amount of offices being converted or demolished surpasses the volume of new office developments, marking a shift not seen in at least 25 years.
- This shift follows years of high office vacancies driven by the pandemic and remote-work culture, although recent leasing activity is rising due to tech and AI company demand.
- AI firms like OpenAI and Databricks have expanded in San Francisco, leasing millions of square feet and attracting venture capital, while vacancy rates remain high at 35.4 percent.
- CBRE analysts state that the office footprint shrinkage and conversions will lower vacancy rates and boost neighborhood vibrancy despite high construction costs, with 85 million square feet slated for conversion nationwide.
- The reduction in obsolete office space and renewed AI-driven demand suggest a stabilizing market, but challenges remain for San Francisco’s public safety and infrastructure, impacting future growth.
17 Articles
17 Articles
At long last, Downtown’s best office buildings are booming with activity
Midtown’s best buildings are signed for. Now, even second- and third-rate offices are fast disappearing from the market, as 5.5 million square feet of workspace is converted for residential use. But there’s a big winner from the crunch: Lower Manhattan. “Midtown has become incredibly tight for large tenants looking for quality space,” said Jonathan Mazur,...
What's Behind the Commercial Real Estate Mess in Minneapolis?
The collapse of the commercial real estate market has been a constant in the news since 2020. It has driven a chain reaction of phenomena that portend deep problems for the core Twin Cities and even some suburbs. But it’s a slow-moving crisis whose depths and ultimate impact remain difficult to gauge. Depending on who you talk to and which articles you read, the problem is work-from-home, the problem is leverage, the problem is vacancies, the pr…
In the city, you just have to raise your head to see it: office buildings are very often empty. How do you understand it? The sociologist Marine Duros conducted the investigation. It is joined by architect François Fromonot.
Office Conversions and Demolitions Will Exceed New Construction in 2025 For the First Time in Several Years
CBRE found more than 23 million sq. ft. of office space planned for conversion or demolition this year, which exceeds the amount of new construction. More office space will be removed from the U.S. market this year than added to it for the first time since at least 2018 and likely longer, providing another indicator of the market’s stabilisation and nascent recovery, according to a new report from CBRE. CBRE’s analysis of office-market activity …
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