Development

The retail sector peaked in May 2014 at 52.5 million square feet, but experienced a 27 percent decline in construction in the following year.

Change in U.S. commercial real estate under construction

Source: CoStar Group Inc.
Source: CoStar Group Inc.

New development (on a square-foot basis) decreased compared to May 2016 for all property types. Retail construction fell 29.7 percent, followed closely by office (-27.2%) and industrial (-21.4%). Compared to April 2017, the percentage of industrial properties under construction decreased by 15.4 percent, followed by a decrease of 11 percent for retail construction. Month-over-month, office construction fell 7.2 percent. The retail sector peaked in May 2014 at 52.5 million square feet, but experienced a 27 percent decline in construction in the following year.