2019 Development

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

Year-over-year, new development declined all property types on a square-foot basis. Office development registered the smallest change, down by 5 percent, retail construction fell by 19 percent and industrial recorded the most notable drop, down by 17 percent drop as of May. On a month-over-month basis, office construction increased by 2 percent, while retail development declined by 8 percent and industrial construction fell by 12 percent.

In the past three years, construction activity in the retail sector peaked in May 2016 at 30.9 million square feet. Compared to this cycle peak, development decreased by 58 percent in May 2019; compared to May 2017, development decreased by 37 percent. Construction activity in the retail sector decreased by 19 percent from May 2018 to May 2019.

—Posted on June 21, 2019


Source: CoStar Group Inc.

New development decreased on a square-foot basis for all property types year-over-year, according to CoStar Group data. Industrial construction dropped by 21 percent, retail development decreased by 11 percent and office followed with the smallest decrease, down by 6 percent as of April. The share of office properties under construction increased by 4.0 percent month-over-month, followed by industrial development (up by 0.2 percent). Development activity for retail properties declined by 6.2 percent compared to March 2019.

In the previous three years, the office sector peaked in April 2016 at 90.4 million square feet. Compared to this cycle peak, construction activity decreased by 50.2 percent in April 2019. In comparison with April 2017, development activity in April 2019 decreased by 33.4 percent, while comparing April 2019 to the same period in 2018, development activity in the office sector decreased by only 6.1 percent.

—Posted on May 29, 2019


Source: CoStar Group Inc.

New development decreased on a square-foot basis for all property types year-over-year, according to CoStar Group. Industrial construction fell by 26 percent, office development decreased by 24 percent and retail followed with a 19 percent decline as of March. The share of industrial properties under construction decreased by 7.9 percent month-over-month, followed by office development with a decline of 7.1 percent. Development activity for retail properties recorded a slight decrease of 1.0 percent compared to February 2019. In the past three years, the industrial sector peaked in March 2016 at 76.4 million square feet. Construction activity decreased by 54.4 percent in March 2019, compared to the same month in 2016. In comparison with March 2017, construction decreased by 46.6 percent. Comparing March 2019 to the same period in 2018, development activity in the industrial sector posted a 26.3 percent decline.

—Posted on Apr. 23, 2019


Source: CoStar Group Inc.

New development declined year-over-year for all property types on a square-foot basis. Office development decreased by 20 percent, industrial construction fell by 18 percent and retail followed with a 17 percent drop as of February. The percentage of retail properties under construction decreased by 11.6 percent month-over-month, followed by office assets (down by 9.5 percent). Development activity for industrial properties registered a 15.8 percent decrease.

In the past three years, the retail sector peaked in February 2016 at 29.9 million square feet. In comparison with the same month in 2017, construction decreased by 23.9 percent. Comparing February 2016 to the same period in 2017, the retail sector experienced a 41.9 percent decline, followed by a 51.6 percent drop in November 2018.

—Posted on Mar. 26, 2019


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