Shrinking Office Footprint in US Markets

This CNBC article highlights a significant shift in the U.S. office market, where for the first time in at least 25 years, more office space is being removed through demolition and conversion than is being built. This trend is primarily driven by the rise of remote work, leading to persistently high vacancy rates around 19%. While the market is showing signs of recovery with increasing leasing activity, the reduction in supply through conversions, particularly to residential use, is seen as a positive step towards stabilizing rents and improving the vibrancy of urban areas, despite challenges like high conversion costs.

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