Development

On a month-over-month basis, Retail properties under construction decreased by 12.8 percent and Industrial assets dropped by 11.0 percent. In November 2017, construction activity in the Office sector dropped by 8.9 percent compared to the previous month.

Change in U.S. commercial real estate under construction

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

New development decreased for all property types on a square foot basis compared to November 2016. Industrial construction dropped by 35.0 percent, while Office development fell by 32.0 percent and Retail by 30.0 percent. On a month-over-month basis, Retail properties under construction decreased by 12.8 percent and Industrial assets dropped by 11.0 percent. In November 2017, construction activity in the Office sector dropped by 8.9 percent compared to the previous month. Construction activity in the Retail sector peaked in November 2014, when more than 46 million square feet of space was underway, but decreased by 31.0 percent in the same interval in 2015 and then by 23.0 percent in November 2016.