Development

Compared to May 2017, the percentage of industrial properties under construction decreased by 11.9 percent, followed by a decrease of 7 percent for office construction.

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 June 2016 for all property types. Retail construction fell 34 percent, followed closely by industrial (-32.4%) and office (-30.7%). Compared to May 2017, the percentage of industrial properties under construction decreased by 11.9 percent, followed by a decrease of 7 percent for office construction. Month-over-month, retail construction fell by 6.4 percent. The office sector peaked in June 2015 at 118.6 million square feet, but experienced a 27 percent decline in construction the following year.