The shift toward remote work since the COVID-19 pandemic has fundamentally altered office culture as workers — especially those who have primarily experienced professional life in a remote or hybrid environment — are now resistant to a full-scale return to the office.

At the same time, the relatively modest growth of office-using jobs in recent years also plays a role in the realignment we’re currently seeing in the market, thereby suggesting a fundamental change in the demand for traditional office space.

Taking all of this into account and using data extracted from CommercialEdge, our office construction outlook for 2025 points toward a continuation of the decline in output that we’ve witnessed for the last couple of years: Following a 48% year-over-year drop and standing at an estimated 51 million square feet, the total volume of U.S. office space under construction this year is the lowest it’s been in a decade.

Even so, a look at construction activity across U.S. markets reveals Boston’s continued dominance (7.3 million square feet), despite the shrinking pipeline. Next, Austin has jumped several places in the ranking to overtake Seattle, San Diego, and even San Francisco, to land in second place with 3.6 million square feet under construction.

With projects still under construction making up roughly 3% to 4% of their respective stocks, Austin, Texas; Nashville, Tenn.; and San Diego boast the largest office pipelines relative to their existing inventories.

Notably, five of the top 20 major office projects set to be delivered this year are above the 1-million-square-foot mark with the massive, 2.5-million-square-foot 270 Park in Manhattan as the largest of the lot.

Our newest office report reveals:

• Atlanta remained one of the most active office markets with roughly 934,000 square feet (or 0.5% of the market’s total office stock) of office space under development in 2025.

• Looking at the overall ranking, Boston is home to the largest office pipeline for the 2^nd year in a row, featuring 7.3 million square feet of office space – 2.8% of the city’s total office stock.

• Meanwhile, Austin boasts the highest percentage of office space under construction among the top 20 largest office markets by square footage, with current projects comprising roughly 4% of the market’s total inventory.

• In terms of office deliveries, the 2.5-million-square-foot 270 Park in Manhattan stands as the largest office project set for delivery this year. 

Find more details and our complete methodology here: www.commercialcafe.com