As we enter this year’s second quarter, CommercialCafe released a new study examining the state of the office pipeline for 2022. Offering some fascinating insights into the hottest commercial real estate markets that are building and expanding the most, the report also looked at the 20 largest commercial projects set to be delivered by the end of the year.
The results suggest exciting modern designs paired with green technologies to create more sustainable office spaces with a focus on occupant health.
Northeast Leads the Way in Office Space Development
Across all the major markets in the U.S., more than 146.6 million square feet of office space are currently under construction. Topping the charts, New York City is home to the most active pipeline, with Manhattan boasting 19.2 million square feet of office projects under development at the close of February this year. Representing 4% of the total stock, it’s clear that NYC remains an active and attractive location for commercial real estate.
Outside of NYC, the Boston market takes the number two spot, with almost 12 million square feet of new office space under construction. This accounts for nearly 5% of the total stock, a welcome sign for a market that reported the lowest vacancy of commercial space in a recent report by CommercialEdge.
One Post Office Square is the largest project in Boston due to be completed this year. Built to LEED gold standards, the sustainable redevelopment aims to set the bar high in terms of environments built with the health of its occupants in mind.
Projected Office Expansions Stand Out in the South
Austin, TX, ranks as the third most active pipeline, with almost 10.2 million square feet of office space currently under construction. This effort sees it reaching the number one spot in terms of market expansions, with new projects accounting for 11.6% of the city’s total stock.
Nashville, TN, follows close behind. At the end of Q1, 4.6 million square feet of commercial space were under construction, representing 8% of the existing stock. It’s a market to keep an eye on going forward, too — in addition to projects that have already broken ground, several more are in the planning stage, hinting at a more significant market expansion of up to 15.7%.
NYC Dominates Top 20 Office Deliveries
Of the top 20 biggest office deliveries set for 2022, six are in NYC. Notably, the city takes the top three spots:
- 50 Hudson Yards: 2.9 million square feet
- The Spiral: 2.8 million square feet
- Morgan North: 2.2 million square feet
Slated to be the city’s fourth-largest office tower, 50 Hudson Yards is a supertall skyscraper that topped out at 1,011 feet last year and spans an entire city block. Boasting 2.9 million square feet of LEED Gold-certified space, the building is set to be among the most sustainable in the city.
Topping out at 1,041 square feet last year, The Spiral is close behind with 2.8 million square feet of human-centric-designed workspace. The striking tower showcases a series of cascading garden terraces, offering further proof that comfort and the well-being of occupants are at the forefront of the designer’s (Bjarke Ingels Group) mind.
Redeveloping Campuses in the Midwest
Taking the fourth spot in the top 20, the redevelopment of the Ford Motor Company Dearborn Campus – The Hub in Dearborn, MI, proves that progress doesn’t necessarily have to reach for the sky. The new 2.2 million square feet headquarters are set to see completion in Q4 this year.
Rainwater capture and geothermal tech, alongside high-efficiency lighting, are just some of the green features implemented to reduce energy usage. Besides sustainability, the space focuses on human comfort, with each building interconnected by courtyards and gardens.
Meanwhile, the former General Electric campus in Fort Wayne, IN, has been transformed into an innovative, future-ready, mixed-use district called Electric Works. Working in partnership with the National Park Service and the Indiana State Historic Preservation Office, the site aims to be low-impact.
Tech Giants Boast 1.8 MSF of Office Space in Austin
Except for NYC, Austin is the only city with more than one entry on the top 20 list. The metro has proven an attractive spot for two of the world’s largest tech companies: Apple and Google. Both have invested in office space in the city, with completion dates by the end of Q2.
The almost 1-million square feet Apple West Parmer Lane Campus is the larger of the two. The brand new site incorporates a mix of office buildings and What are amenities? Amenities are characteristics that increase the real or perceived value of a... More, including a hotel, a daycare center and parking facilities. Such amenities hint at creating a more people-focused design.
Block 185 is located downtown and is set to become a new addition to the skyline. The tower topped out at 590 feet and is leased entirely by Google. Modern building strategies were employed throughout the process, with virtual 3D technology overcoming the traditional challenges of working within a confined, downtown footprint. Such tech also made for much more efficient equipment and material planning and on-the-ground coordination, reducing waste considerably.
Occupant Health and Sustainability in the Spotlight
Markets across the country appear to be making the most of new technology and greener design. Notably, half of the most significant 20 office projects currently underway are redevelopments focused on preserving pre-existing structures. With smart building technologies and green materials and techniques, older constructions have been given a new lease of life, ready to take on the future.
Moreover, many building designs incorporate elements that focus on improving the health and comfort of the people working in them. With green spaces, natural light and cleaner air tech, occupant health has never been better catered to.
Interested in the office or shared spaces market in the cities mentioned in this study? Check out the links below: