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Workplace deliveries all through 2022 totaled practically 61 million sq. ft nationwide, accounting for 0.8 % of complete inventory, in line with CommercialEdge information. Workplace improvement misplaced steam this yr, as clouds of uncertainty proceed to loom over the actual property panorama amid a slowing economic system. Consequently, workplace deliveries recorded a 28.6 % lower from the 85.4 million sq. ft accomplished in 2021. Development begins, nonetheless, totaled 75.5 million sq. ft final yr, surpassing 2021’s complete of 62.1 million sq. ft.
The majority of accomplished tasks was concentrated in gateway and tech-centric markets. The ten metros on this listing account for 55.2 % of the sq. footage which reached completion in 2022.
| Rank | Market | Sq Ft Delivered | % of inventory |
| 1 | Manhattan | 6,969,275 | 1.5% |
| 2 | Austin | 4,326,711 | 4.1% |
| 3 | Boston | 3,591,895 | 1.3% |
| 4 | San Francisco | 3,387,666 | 1.9% |
| 5 | Dallas | 3,013,874 | 0.9% |
| 6 | Los Angeles | 2,912,264 | 0.9% |
| 7 | Washington, D.C. | 2,700,247 | 0.7% |
| 8 | Chicago | 2,567,705 | 0.7% |
| 9 | Atlanta | 2,253,753 | 1.0% |
| 10 | Bay Space | 1,969,868 | 0.7% |
1. Manhattan
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Gateway markets proceed to be an evergreen attraction to buyers. Because of this, builders in Manhattan stored busy in 2022, specializing in extremely amenitized workplace area, in addition to mixed-use buildings and enormous developments. General, they accomplished 10 tasks with a mixed sq. footage of seven million sq. ft, 1.5 % of complete inventory and 70 foundation factors increased than the nationwide common of 0.8 %.
The most important share of deliveries was located within the Chelsea submarket, the place two properties encompassing a bit of over 2.9 million sq. ft noticed completion by year-end. The most important one was the two.9 million-square-foot 50 Hudson Yards, a $3.8 billion venture developed by a three way partnership between Cos., Mitsui Fudosan America and Oxford Properties Group.
2. Austin
In Austin, 39 tasks totaling 4.3 million sq. ft of workplace area had been accomplished in 2022, equal to 4.1 % of current stock—the most important share when it comes to share of inventory—and 330 foundation factors above the nationwide price. Workplace deliveries surpassed completions from 2021, when 3.2 million sq. ft, or 34.7 % much less, was added to the market.
Deliveries had been concentrated in downtown Austin, the place practically 1.3 million sq. ft throughout three properties got here on-line. The most important workplace venture consisted of Block 185, a 796,525-square-foot venture at 601 West 2nd St. absolutely occupied by Google. Trammel Crow broke floor on the property in 2019 and accomplished it in August.
3. Boston
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Life sciences and tech proceed to gasoline Boston’s improvement exercise. The metro noticed shut to three.6 million sq. ft of workplace area delivered all through 2022, accounting for 1.3 % of complete inventory and up 50 foundation factors when in comparison with the nationwide common. Workplace deliveries recorded a 17.0 % drop from 2021, when 4.2 million sq. ft was added to the metro’s inventory. What’s extra, the metro had shut to six.7 million of workplace building begins in 2022.
Information from Commercialedge exhibits that within the Fenway submarket, three properties totaling 977,840 sq. ft had been finalized in 2022. The most important one consisted of Alexandria Actual Property Equities’ 201 Brooklyn Avenue, a 510,116-square-foot venture accomplished final September and anchored by Verve Therapeutics.
4. San Francisco
Almost 3.4 million sq. ft of workplace area got here on-line within the metro in 2022, representing 1.9 % of complete inventory and 110 foundation factors above the nationwide price of 0.8 %. Complete deliveries declined by 44.4 % when in comparison with 2021’s complete of 5 million sq. ft.
Accomplished workplace tasks had been concentrated within the South San Francisco submarket, the place three properties totaling practically 1.2 million sq. ft noticed completion. The most important supply within the submarket—and within the metro—was Kilroy Realty’s 656,000-square-foot Kilroy Oyster Level-Inception. The venture represents the primary section of the transformation of 81 acres of bayfront on Oyster Level Boulevard.
5. Dallas-Fort Value
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Workplace deliveries within the Dallas-Fort Value metro all through 2022 amounted to a bit of over 3 million sq. ft of area, accounting for 0.9 % of current inventory. Regardless of heightened building exercise—workplace building begins in 2022 totaled 4.4 million sq. ft—the metro didn’t handle to achieve pre-pandemic ranges for workplace completions. Resembling San Francisco, deliveries in 2022 recorded a 44.5 % lower from the 4.3 million sq. ft completed in 2021.
The majority of deliveries—20.6 %—was concentrated within the South Dallas submarket. Two properties encompassing 622,930 sq. ft had been accomplished, with the most important supply consisting of Westdale Asset Administration’s 485,000-square-foot The Epic II.
6. Los Angeles
The California market noticed a bit of over 2.9 million sq. ft of workplace area delivered in 2022, representing 0.9 % of complete inventory and practically on par with the nationwide common. The amount of workplace deliveries elevated by 5.9 % when in comparison with 2021, when some 2.7 million sq. ft got here on-line.
Growth exercise was concentrated within the West Los Angeles submarket, the place 1.1 million sq. ft was added to the market all through 2022. The most important property was One Westside, a 680,000-square-foot workplace asset developed by Hudson Pacific Properties. Development of the Google-occupied constructing broke floor in August 2019.
7. Washington, D.C.
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Workplace builders accomplished tasks totaling 2.7 million sq. ft of workplace area throughout 2022, or 0.7 % of complete inventory. This represents a 28.3 % lower from the yr prior, when shut to three.8 million sq. ft of workplace area was added to the metro’s stock.
In Bethesda, Md. three way partnership companions The Bernstein Cos. and Boston Properties completed Marriott’s Worldwide new headquarters. The 785,000-square-foot asset at 7750 Wisconsin Ave. homes each the hospitality firm’s flagship workplace and a Marriott resort.
8. Chicago
Chicago was one of many hardest-hit metros throughout the pandemic, leading to a bit of over of 1.3 million sq. ft of workplace area delivered in 2021. Nevertheless, the market has proven robust indicators of restoration, and builders accomplished seven tasks with a mixed sq. footage of practically 2.6 million, or 0.7 % of complete inventory. This represents a 90.8 % enhance from 2021, when 1.3 million sq. ft was accomplished.
The most important tasks to return on-line in 2022 had been situated in Chicago’s Central Enterprise District, the place two property totaling greater than 1.5 million sq. ft delivered. Developed by Riverside Funding & Growth, 320 Canal encompasses greater than 1.4 million sq. ft throughout 52 flooring.
9. Atlanta
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Builders accomplished 12 workplace tasks totaling a bit of over 2.2 million sq. ft in 2022, equal to 1.0 % of inventory. This represents a 57.6 % lower from the identical interval in 2021, when 5.3 million sq. ft got here on-line. Regardless of a slowdown in workplace deliveries, builders broke floor on 18 workplace tasks totaling greater than 11.6 million sq. ft in 2022, making Atlanta the most well liked marketplace for new building exercise on our listing.
Builders centered their efforts on the Midtown submarket, the place two properties totaling 927,536 had been delivered. The most important one is the 612,947-square-foot Midtown Union, developed by MetLife Actual Property funding and anchored by Invesco.
10. Bay Space
The pandemic’s affect on the Bay Space’s workplace panorama was vital, leading to lower than 2 million sq. ft of recent workplace area delivered in 2022, accounting for 0.7 % of the full inventory. Workplace completions recorded a drop when in comparison with 2021 quantity, when 3.9 million sq. ft—or 49.9 % extra—was added to the market. Within the meantime, new workplace begins within the metro throughout 2022 totaled 4.8 million sq. ft.
The most important venture to return on-line in 2022 was a 754,800-square-foot venture constructed by NVIDIA. Identified Voyager, the four-story constructing serves because the tech big’s headquarters. Development began in June 2018, and the asset reached completion in February 2022.
