2019 Development

Year-over-year change in U.S. commercial real estate under construction in the industrial, office and retail sectors, updated monthly.
Source: CoStar Group Inc.

New development decreased for all property types year-over-year on a square foot basis. Office construction dropped by 22 percent, retail development fell by 7 percent and industrial followed with a 2 percent decline as of January. The percentage of office properties under construction decreased by only 20 basis points month-over-month, followed by retail assets (down by 1.9%). Development activity for industrial properties registered a 7.2 percent drop. Taking into account the past three years, the office sector peaked in January 2016 at some 94 million square feet underway. Development decreased by 22.6 percent compared to the same month in 2017. Comparing January 2016 to the same period in 2018, the office sector experienced a 43.3 percent drop, followed by a 55.9 percent decline in January 2019.

—Posted on Feb. 13, 2019