Development

The office sector peaked in October 2014 at 117.1 million square feet, but construction dropped 9.4 percent in the same period in 2015 and 27.1 percent in October 2016 compared to the same month in the previous year.

Change in U.S. commercial real estate under construction

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

Compared to October 2016, new development (on a square foot basis) lost steam across all property types. Retail construction dropped by 27 percent, while Office and Industrial construction fell each by 25 percent. The share of industrial properties under construction decreased by 12 percent compared to September 2017. Retail construction fell 3.4 percent in the same timeframe, while office construction dropped slightly by 1.6 percent. The office sector peaked in October 2014 at 117.1 million square feet, but construction dropped 9.4 percent in the same period in 2015 and 27.1 percent in October 2016 compared to the same month in the previous year.