Charted: Office demolitions accelerate
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.