National

Closer

Axios Closer

U.S. office space construction and removal

Data: Jones Lang LaSalle, Inc; Chart: Erin Davis/Axios Visuals

Developers demolished more offices than they built in the first half of 2023.

Why it matters: New data from Jones Lang LaSalle (JLL) shows how commercial real estate is still reeling from the sudden spike in remote work during the pandemic.

By the numbers: Crews razed 14.7 million square feet of office space in the first half of the year while breaking ground on only 4.8 million square feet, according to JLL.

That's the first time in recent memory that groundbreakings trailed demolitions.

In 2019, the last full year before the pandemic, groundbreakings totaled 77.6 million square feet while demolitions totaled only 10 million square feet.

The bottom line: The real estate sector is already adjusting to the new normal.

Charted: Office demolitions accelerate

Construction

Illustration of construction excavators with glowing geometric shapes.

Developers demolished more offices than they built in the first half of 2023.Why it matters: New data from Jones Lang LaSalle (JLL) shows how commercial real estate is still reeling from the sudden spike in remote work during the pandemic.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Charted: Office demolitions accelerate

Go deeper