The workplace sector continued to alter in 2024, as stabilization efforts following post-pandemic results noticed completely different subsectors develop into the first driver out there. As a number of corporations carried out return-to-office insurance policies, workplace utilization metrics posted solely marginal will increase all year long, whereas excessive emptiness charges proceed to have an effect on a number of key markets, in accordance with CommercialEdge knowledge. Nationally, solely 57.8 million sq. toes of workplace house was underneath development by means of November, down 39 million sq. toes from 2023.
The decline in workplace initiatives underneath development didn’t keep away from Western U.S. markets. The next listing reveals main markets for workplace growth underway within the area, whereas additionally highlighting initiatives delivered by means of the primary eleven months of 2024.
The highest 4 markets had a mixed workplace pipeline amounting to solely 694,266 sq. toes, a major drop from the 1.6 million sq. toes that broke floor throughout the identical interval in 2023. When it comes to workplace deliveries, builders accomplished nearly 2 million sq. toes, while some 2.9 million sq. toes had come on-line in 2023. The distinction marks a 31 % lower in new workplace house throughout the metros within the area. Listed here are the highest markets for workplace growth within the Western U.S., primarily based on CommercialEdge knowledge.
Phoenix
Phoenix had 373,247 sq. toes of workplace house unfold throughout seven properties underneath development as of November. The metro continues to be scuffling with provide and posted one of many smallest pipelines amongst Solar Belt metros.
Builders broke floor on all these initiatives throughout the identical month, whereas workplace deliveries totaled 646,629 sq. toes throughout 10 properties year-to-date as of November. SunCap Property Group’s Gilbert Spectrum’s Constructing 3 stays the most important workplace venture underneath development in Phoenix. The 119,222-square-foot constructing is a part of the corporate’s Gilbert Spectrum venture, a 64-acre workplace campus in Gilbert, Ariz., that may embody 850,000 sq. toes of workplace, tech and flex industrial house.
In distinction, 9 properties broke floor throughout the identical interval final 12 months, totaling 619,213 sq. toes, whereas builders delivered 712,719 sq. toes throughout 12 properties.
Denver
When it comes to house underway, Denver adopted with slightly below 200,000 sq. toes throughout 5 properties. There have been seven workplace initiatives totaling 1.3 million sq. toes that had been accomplished as of November.
Considered one of them is 1900 Lawrence, developed by Riverside Funding & Growth, that features 726,450 sq. toes of Class An area. Rising 30 tales in Denver’s central enterprise district, the high-rise is without doubt one of the largest skyscrapers delivered within the metro during the last 40 years.
When final 12 months’s knowledge, Denver had 776,904 sq. toes throughout seven properties underneath development, whereas builders accomplished 10 different properties, or 1.4 million sq. toes.
Salt Lake Metropolis
Salt Lake Metropolis had solely two properties totaling 84,655 sq. toes underway as of November, each beginning development in the identical interval. There have been 91,638 sq. toes of house throughout three delivered properties. This quantity marks an 84 % lower in comparison with 2023 knowledge, when 574,349 sq. toes of workplace house was accomplished. When it comes to house underneath development, Salt Lake Metropolis had 214,867 sq. toes throughout 5 properties underway at this level in 2023, a 60 % lower from the present pipeline.
Boise and different metros with restricted exercise
Boise, Idaho had just one workplace venture underway as of November, totaling 37,067 sq. toes, with no important deliveries recorded this 12 months. In 2023, builders delivered 255,500 sq. toes of workplace house throughout three properties within the capital metropolis of Idaho.
Different giant Western markets on the listing embody Las Vegas, Reno, Nev., Albuquerque, N.M., and Tucson, Ariz. These posted both a too restricted pipeline or barely any growth underway as of November, showcasing the overarching slowdown in workplace growth, not solely within the area however within the nation at giant. This 12 months’s numbers present that solely Las Vegas and Albuquerque noticed any important workplace completions, with 458,810 sq. toes throughout six properties, and 95,000 sq. toes throughout a single property.
When 2023 knowledge, three properties totaling 402,042 sq. toes of workplace house got here on-line in Las Vegas. The one metro the place builders delivered important properties was Albuquerque, with these buildings totaling 110,915 sq. toes.
