Your Commercial Real Estate Source in the San Francisco Bay Area
By Eliot Brown
Office-building construction is in the midst of a severe drought. This means higher rents may be on the horizon in some cities, if history is any guide.
In the U.S. last year, developers broke ground on office buildings with a total of just 56 million square feet of space, the lowest level tracked by McGraw-Hill Construction since at least 1960.
Even during the early 1990s, in the aftermath of a surge of construction a decade earlier that left cities around the country dotted with empty office buildings, the U.S. never dropped below 80 million square feet of new office-building construction …
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