PLACE
COMMERCIAL REAL ESTATE Square-footage under construction significantly declined beginning in Q4 2022 as firms completed the majority of pent-up construction in the office and industrial space. Both sectors have avoided new construction projects, likely due to increased interest rates, and inflation. Uncertainty in the office sector and reduced demand for warehousing space for the industrial market is also likely contributing to the decline in construction.
SQUARE FEET OF OFFICE SPACE UNDER CONSTRUCTION BY QUARTER
450,000
SQUARE FEET OF INDUSTRIAL SPACE UNDER CONSTRUCTION BY QUARTER
400,000
350,000
2,500,000
300,000
2,000,000
250,000
200,000
1,500,000
150,000
100,000
1,000,000
50,000
0
2019
2020
2021
2022
2023
500,000
Source: JLL
0
2019
2020
2021
2022
2023
Source: JLL
STATE OF THE REGION 2023 | 10
Made with FlippingBook Ebook Creator