More office space is being removed than added for the first time in at least 25 years
Jun 2, 2025, 12:25 PM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting
The shift in office demand indicates potential for landlord revenue stabilization. Historical examples show similar market recoveries led to increased REIT valuations.
AI summary
What happened, with direct paths to the underlying reporting
U.S. office market sees more demolitions than new constructions this year. 23.3 million square feet slated for demolition or conversion; 12.7 million added. Net absorption has been positive after six negative quarters. Demand for office space stabilizes, benefiting major REITs like Alexandria. 85 million square feet of office space ready for conversion in upcoming years.
U.S. office market sees more demolitions than new constructions this year.
23.3 million square feet slated for demolition or conversion; 12.7 million added.
Net absorption has been positive after six negative quarters.
Demand for office space stabilizes, benefiting major REITs like Alexandria.
85 million square feet of office space ready for conversion in upcoming years.
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