We\u2019re almost halfway through H2 2018, and it\u2019s high time to check up on construction activity, as well as the state of the U.S. office pipeline when compared to previous analyses. Last year around the same time, we looked at top U.S. cities for office delivery during the fall-winter season, and found that NYC, San Francisco, Plano, Cupertino, and Atlanta had the busiest delivery schedules for new office projects. In December 2017, we analyzed what markets would welcome the most new office space in 2018, and it looked like suburban construction would drive the 2018 office pipeline.<\/p>\n
This year, tariffs imposed on steel and aluminum have already caused<\/a> some reconsideration of planned construction projects. Uncertainty regarding how the commercial real estate industry will work around changes in building costs makes it difficult to draw reliable longer term pipeline estimates, at present. We can, however, look at office projects that either were completed since the start of January, or are nearing completion, with a set delivery date before the end of this coming December.<\/p>\n According to information tracked by CRE research and data platform Yardi Matrix<\/a>, new office and mixed-use projects encompassing roughly 101 million square feet are on track for 2018. Nearly 42 million square feet of that total were delivered during the first six months of the year, leaving nearly 60% of 2018 scheduled office completions for delivery during H2. Read on to see where developers been busiest, and to check out the 20 largest office projects delivered and yet to come online this year.<\/p>\n Competition is close between the top two U.S. markets for office development in 2018. Bay Area<\/a> completions scheduled for this year total just over 11 million square feet and put the California office market in the lead. New York City<\/a> landed second place, with office development in Brooklyn, Manhattan, and Queens amounting to nearly 10 million square feet. Number three on the list is Texas\u2019 D-FW metroplex. Office development in the Dallas<\/a> metro area resulted in 7.7 million square feet of new office space scheduled for delivery in 2018. The growth of the Dallas office market is driven by corporate relocations and expansions, fueled by central location and cost of living, and sustained by availability of vacant land in the Dallas central business district and surrounding corridors.<\/p>\n San Francisco<\/a> is fourth, with just over 7 million square feet in office projects due for completion this year. Washington, D.C.<\/a>, rounds out the top five, with 6.3 million square feet of new office real estate in the works. Each city\u2019s largest completion of the year has already been delivered and is open for business. The 1.4 million-square-foot Salesforce Tower in San Francisco<\/a> officially wrapped up in May and Carr Properties\u2019 862,000-square-foot Midtown Center in Downtown D.C.<\/a> opened in June. Both projects rank among the top 10 largest to be completed in H1 2018.<\/p>\n Check out the table below for the full list of top 40 markets for office development in 2018 and read on for more office pipeline highlights of the year:<\/em><\/p>\nBay Area, NYC, Dallas, Top Markets for Office Development in 2018<\/h4>\n