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U.S. office construction plunges to 14-year low as Joseph Politano flags nearly 59 percent investment drop

U.S. office construction plunges to 14-year low as Joseph Politano flags nearly 59 percent investment drop
U.S. office construction at 14-year low

U.S. office construction has hit a new 14-year low, according to official data highlighted by Joseph Politano. The sector has experienced a steady decline for over five years, with inflation-adjusted investment in new office buildings falling by nearly 59 percent since the start of COVID.

Politano points to the ongoing weakness in U.S. office construction, underscoring extended pressures in commercial real estate development amid persistent market headwinds.

The ongoing decline in office construction parallels broader real estate headwinds, mirroring recent trends in sectors such as U.S. warehouse development, where a notable 35 percent drop since 2023 has illustrated the industry's wider contraction. These shifts also align with patterns seen in North American economies, echoing early signals from the contraction in Canada’s GDP last October, underscoring the interconnected nature of commercial investment and regional growth.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

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