Commercial Cafe, a commercial real estate information website, compiled a list of planned 2018 office building pipeline in the top 50 markets. Overall, nearly 75 million square feet of new office space will be delivered in 50 markets next year.
The data pointed to the following major headlines:
- Suburbs: Up to 35 million square feet of office space will be delivered in the suburbs;
- Urban Areas: Up to 24 million square feet in urban areas; and
- Central Business Districts (CBD’s): Up to 15 million in the overbuilt CBDs.
With vacant land increasingly rare and expensive in downtown areas, businesses are forced to reconsider the once popular suburban corporate campus. Apple is acting as the standard-bearer, embracing the suburbs in style with its state-of-the-art headquarters at 10955 N. Tantau Avenue in Cupertino, CA.
Top 50 Destinations for Office Deliveries in 2018
| # | City, State | Office Pipeline 2018 (Sq.Ft.) | Office Pipeline 2018 (No. of Buildings) | Existing Office Inventory (Sq.Ft) | 2018 Pipeline vs. Existing Inventory (%) |
|---|---|---|---|---|---|
| 1 | New York City, NY | 6,768,142 | 15 | 465,624,888 | 1% |
| 2 | San Francisco, CA | 4,640,159 | 8 | 82,712,963 | 6% |
| 3 | Washington, DC | 3,740,281 | 12 | 120,027,596 | 3% |
| 4 | Cupertino, CA | 2,880,500 | 1 | 5,281,181 | 55% |
| 5 | Philadelphia, PA | 2,698,987 | 6 | 57,845,680 | 5% |
| 6 | Austin, TX | 2,566,676 | 10 | 55,099,290 | 5% |
| 7 | Chicago, IL | 2,441,877 | 8 | 151,409,654 | 2% |
| 8 | Denver, CO | 2,183,591 | 9 | 49,473,563 | 4% |
| 9 | Seattle, WA | 1,816,300 | 6 | 58,921,289 | 3% |
| 10 | Los Angeles, CA | 1,731,461 | 8 | 98,478,268 | 2% |
| 11 | McLean, VA | 1,377,550 | 2 | 18,055,375 | 8% |
| 12 | Frisco, TX | 1,318,000 | 5 | 4,519,611 | 29% |
| 13 | San Jose, CA | 1,282,103 | 7 | 40,568,740 | 3% |
| 14 | Boston, MA | 1,278,986 | 5 | 69,234,173 | 2% |
| 15 | Durham, NC | 1,207,822 | 7 | 11,636,547 | 10% |
| 16 | Beaverton, OR | 1,061,000 | 2 | 6,174,599 | 17% |
| 17 | Sunnyvale, CA | 1,028,373 | 2 | 15,591,414 | 7% |
| 18 | Dallas, TX | 1,018,778 | 3 | 100,048,970 | 1% |
| 19 | Oklahoma City, OK | 914,614 | 2 | 24,150,182 | 4% |
| 20 | Atlanta, GA | 817,293 | 6 | 104,934,483 | 1% |
| 21 | Cambridge, MA | 782,925 | 4 | 16,605,039 | 5% |
| 22 | Birmingham, AL | 744,324 | 2 | 20,362,663 | 4% |
| 23 | Renton, WA | 724,520 | 3 | 4,378,818 | 17% |
| 24 | Menlo Park, CA | 706,941 | 3 | 4,966,050 | 14% |
| 25 | Spring, TX | 680,000 | 2 | 2,677,521 | 25% |
| 26 | Tempe, AZ | 656,331 | 3 | 17,288,997 | 4% |
| 27 | San Diego, CA | 609,913 | 4 | 60,176,466 | 1% |
| 28 | Mountain View, CA | 589,990 | 3 | 12,756,427 | 5% |
| 29 | Portland, OR | 589,344 | 5 | 30,146,126 | 2% |
| 30 | Arlington, VA | 570,000 | 1 | 35,939,441 | 2% |
| 31 | Plano, TX | 492,500 | 2 | 29,518,424 | 2% |
| 32 | Addison, TX | 477,000 | 1 | 7,520,363 | 6% |
| 33 | Camden, NJ | 472,376 | 2 | 899,265 | 53% |
| 34 | Madison, WI | 471,000 | 4 | 14,475,281 | 3% |
| 35 | Omaha, NE | 470,000 | 4 | 21,245,205 | 2% |
| 36 | Natick, MA | 460,000 | 1 | 926,822 | 50% |
| 37 | Palo Alto, CA | 448,521 | 3 | 9,677,356 | 5% |
| 38 | Farmers Branch, TX | 435,000 | 1 | 6,532,038 | 7% |
| 39 | Columbus, OH | 421,748 | 5 | 35,098,971 | 1% |
| 40 | Tustin, CA | 417,000 | 3 | 1,473,130 | 28% |
| 41 | Newark, NJ | 415,482 | 1 | 13,552,734 | 3% |
| 42 | Eagan, MN | 400,000 | 1 | 4,512,189 | 9% |
| 43 | Raleigh, NC | 398,006 | 2 | 19,295,406 | 2% |
| 44 | Foster City, CA | 397,000 | 2 | 4,125,398 | 10% |
| 45 | South San Francisco, CA | 391,794 | 1 | 9,183,128 | 4% |
| 46 | Oakland, CA | 385,466 | 2 | 13,268,096 | 3% |
| 47 | Charleston, SC | 380,000 | 3 | 2,504,595 | 15% |
| 48 | Miami, FL | 376,150 | 5 | 30,588,376 | 1% |
| 49 | Johnston, RI | 373,980 | 3 | 971,346 | 39% |
| 50 | Berkeley, CA | 342,370 | 1 | 1,252,439 | 27% |
Data provided by Yardi Matrix
Top 20 Projects Scheduled for Completion in 2018
| # | Property | Address | City, State | Office Sq.Ft. | Current owner |
|---|---|---|---|---|---|
| 1 | Apple Park – 10955 North Tantau Avenue | 10955 North Tantau Avenue | Cupertino, CA | 2,880,500 | Apple |
| 2 | 3 World Trade Center | 175 Greenwich Street | New York, NY | 2,200,000 | Silverstein Properties |
| 3 | 55 Hudson Yards | 550 West 34th Street | New York, NY | 1,418,771 | Mitsui Fudosan America |
| 4 | Salesforce Tower | 415 Mission Street | San Francisco, CA | 1,409,679 | Boston Properties |
| 5 | Comcast Technology Center | 1800 Arch Street | Philadelphia, PA | 1,321,921 | Liberty Property Trust |
| 6 | Capital One Headquarters II | 1680 Capital One Drive | McLean, VA | 940,550 | Capital One |
| 7 | Central & Wolfe | 222 North Wolfe Road | Sunnyvale, CA | 882,857 | Jay Paul Company |
| 8 | 390 Madison Avenue | 390 Madison Avenue | New York, NY | 820,365 | Clarion Partners |
| 9 | Midtown Center | 1150 15th Street NW | Washington, DC | 818,149 | Carr Properties |
| 10 | 151 North Franklin | 151 North Franklin Street | Chicago, IL | 797,355 | John Buck Company |
| 11 | Park Tower at Transbay | 250 Howard Street | San Francisco, CA | 741,500 | MetLife Real Estate Investment |
| 12 | Exchange on 16th | 600 16th Street | San Francisco, CA | 735,000 | Kilroy Realty |
| 13 | 655 New York Avenue – Phase I | 655 New York Avenue NW | Washington, DC | 678,000 | Douglas Development |
| 14 | Brooklyn Navy Yard – Dock 72 | 63 Flushing Avenue | Brooklyn, NY | 675,000 | Boston Properties |
| 15 | 1144 Fifteenth Street | 1144 15th Street | Denver, CO | 671,101 | Hines Interests |
| 16 | BOK Park Plaza at 499 Sheridan | 499 Sheridan Avenue | Oklahoma City, OK | 664,614 | Devon Energy |
| 17 | Nike World Headquarters – New Building 1 | SWC SW Murray Blvd & Walker Road | Beaverton, OR | 649,000 | Nike |
| 18 | 333 Dexter Avenue | 333 Dexter Avenue North | Seattle, WA | 645,000 | Kilroy Realty |
| 19 | Chase Center | NEC 3rd Street & 16th Street | San Francisco, CA | 580,000 | Golden State Warriors |
| 20 | CEB Tower at Central Place | 1201 Wilson Blvd | Arlington, VA | 570,000 | JBG SMITH |