Developers are beginning to move their office developments to the suburbs. While economist predict the office market as a whole will grow throughout much of next year, a larger share of that growth will be in hot suburban markets in areas like Dallas, Austin and San Francisco.
- Almost 50% of new office development will be in suburban areas
- Suburbs will claim 35 million square-feet of new office space in 2018
- Only 24 million square-feet is projected in urban areas and 15 million in central business districts
- San Francisco’s Bay Area is expected to see the most suburban office development in 2018
As prices continue to rise, it seems office developers are choosing to move their developments to suburban markets. In 2018, suburban markets are expected to see more square-feet worth of development than urban areas or central business districts.
The top two markets for office development in 2018 will accont for almost a third of all new development. San Francisco’s Bay Area has the most office development in progress with almost 6 million sq.ft. of new development in the pipeline. Dallas – Fort Worth is right up there with the Bay Area at a projected 5 million sq.ft.
Here are the top suburban markets for office development in 2018: