Office real estate inventory removals and groundbreaking U.S. 2016-2023
The amount of office real estate removed in the U.S. grew for the third consecutive year in 2022, as waning demand due to the rise in hybrid work has caused a surge in office vacancies. In 2022, 21 million square feet of office real estate was removed - the highest figure in the seven-year-period under since 2016. Though demand for vintage offices has declined, it remained strong for modern, newly-built buildings. Nevertheless, the development of new office properties has slowed down since 2019, with the total square footage of groundbreakings declining to 25.5 million square feet in 2022.
