The shift toward remote work since the COVID-19 pandemic has fundamentally altered office culture as workers \u2014 especially those who have primarily experienced professional life in a remote or hybrid environment \u2014 are now resistant to a full-scale return to the office.<\/p>\n
At the same time, the relatively modest growth of office-using jobs in recent years also plays a role in the realignment we\u2019re currently seeing in the market, thereby suggesting a fundamental change in the demand for traditional office space.<\/p>\n
Taking all of this into account and using data extracted from Yardi Research Data, our office construction outlook for 2025 points toward a continuation of the decline in output that we\u2019ve witnessed for the last couple of years: Following a 48% year-over-year drop and standing at an estimated 51 million square feet, the total volume of U.S. office space under construction this year is the lowest it\u2019s been in a decade.<\/p>\n
Even so, a look at construction activity across U.S. markets reveals Boston\u2019s continued dominance (7.3 million square feet), despite the shrinking pipeline. Next, Austin has jumped several places in the ranking to overtake Seattle, San Diego, and even San Francisco, to land in second place with 3.6 million square feet under construction.<\/p>\n
With projects still under construction making up roughly 3% to 4% of their respective stocks, Austin, Texas; Nashville, Tenn.; and San Diego boast the largest office pipelines relative to their existing inventories.<\/p>\n
Notably, five of the top 20 major office projects set to be delivered this year are above the 1-million-square-foot mark with the massive, 2.5-million-square-foot 270 Park in Manhattan as the largest of the lot.<\/p>\n
Click on the highlights in the executive summary below to learn more development insights and details on the largest office projects scheduled for completion this year.<\/em><\/p>\n Executive Summary<\/strong><\/span><\/p>\n Across major U.S. markets, an estimated 51 million square feet of office space is under development. Compared to 2024, only Boston <\/a>maintained its leading position in the list, with a lot of movement around the other top positions.<\/p>\n\n
Boston Office Pipeline Totals 7.3 Million Square Feet Amid Ongoing Drop in National Output<\/h2>\n