Structural Shift in the Office Pipeline
Office: Under Construction
200
150
100
50
0
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Canada LATAM United States
Source: Cushman & Wakefield Research
Office: Under Construction as a Percent of Inventory
20%
15%
10%
5%
0%
2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025
Canada
LATAM
United States
Source: Cushman & Wakefield Research
• New office construction has declined steadily since 2020, with Q4 2025 marking a cyclical low in square footage under construction. A similar contraction followed the Global Financial Crisis, though the current downturn is more pronounced. The reduction in pipeline activity reflects a combination of cyclical pressures—including elevated interest rates, economic uncertainty, tighter lending standards, the completion of pre-pandemic projects and more structural headwinds stemming from the rise of hybrid and remote work. • Soft leasing activity, a higher vacancy rate and a surge in sublease availability redirected some development capital toward other asset classes, including alternatives. While lower interest rates would provide some support, a meaningful rebound in office development is unlikely in the near term.
Office Sector
16
17
Cushman & Wakefield
Office Fit Out Cost Guide 2026
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