Office Completions Expected To Match 2021 Volume, But Leasing Remains Stagnant

JLL’s most recent office report shows that the U.S. is on par to deliver the same amount of office space as one year ago. 

According to the data, completions have grown 11.8 million to 26.5 million square feet for 2022, which is on track to keep up with the pace of 2021’s 50 million square feet. 

During this time period, JLL found that tenants embraced high-quality spaces, a consistent trend seen during the post-pandemic era. 

“[High-quality buildings] are outperforming the older stock buildings that are continuing to suffer a slow bleed. In either case, concessions are up,” said Joe Iacono, CEO of Crescit Capital Strategies. “Most major urban gateway cities are performing worse overall.”   

Along with the desire for quality over quantity, the report showed that the attempt to return to the office has led office leasing itself to remain stagnant. 

“Without a clear path for the return of all employees to the office, companies are trying to plan for a future involving fully remote work or a mix of both remote and on-site employment,” said Peter L. Curry, real estate practice partner at Farrell Fritz. 

“Companies are moving slowly to figure out the next stage of office architecture and infrastructure. They are conducting pilot programs and seeking far greater employee focus group involvement to determine how best to meet worker expectations while maintaining profitable business operations.”