The shift toward remote work since the COVID-19 pandemic has fundamentally altered office culture as workers — especially those who have primarily experienced professional life in a remote or hybrid environment — are now resistant to a full-scale return to the office.
At the same time, the relatively modest growth of office-using jobs in recent years also plays a role in the realignment we’re currently seeing in the market, thereby suggesting a fundamental change in the demand for traditional office space.
Taking all of this into account and using data extracted from CommercialEdge, our office construction outlook for 2025 points toward a continuation of the decline in output that we’ve witnessed for the last couple of years: Following a 48% year-over-year drop and standing at an estimated 51 million square feet, the total volume of U.S. office space under construction this year is the lowest it’s been in a decade.
Even so, a look at construction activity across U.S. markets reveals Boston’s continued dominance (7.3 million square feet), despite the shrinking pipeline. Next, Austin has jumped several places in the ranking to overtake Seattle, San Diego, and even San Francisco, to land in second place with 3.6 million square feet under construction.
With projects still under construction making up roughly 3% to 4% of their respective stocks, Austin, Texas; Nashville, Tenn.; and San Diego boast the largest office pipelines relative to their existing inventories.
Notably, five of the top 20 major office projects set to be delivered this year are above the 1-million-square-foot mark with the massive, 2.5-million-square-foot 270 Park in Manhattan as the largest of the lot.
Click on the highlights in the executive summary below to learn more development insights and details on the largest office projects scheduled for completion this year.
Executive Summary
Boston Office Pipeline Totals 7.3 Million Square Feet Amid Ongoing Drop in National Output
Across major U.S. markets, an estimated 51 million square feet of office space is under development. Compared to 2024, only Boston maintained its leading position in the list, with a lot of movement around the other top positions.
First, the Boston pipeline currently has some 7.3 million square feet of office space — a total that has declined by 50% year-over-year. Meanwhile, San Francisco’s projected output shrunk from nearly 7 million square feet in 2024 to just 3.5 million square feet this year. Moreover, much of the growth in this market is focused in the areas surrounding San Francisco, such as San Mateo County.
The situation is similar across most office markets with many developers and investors focused on lowering vacancy rates — which have been as high as 25% to 29% in places such as San Francisco, Seattle, and Denver — and maintaining net-positive absorption by limiting new stock.
Not to be outdone, Southern markets have a strong presence across this list with Austin, Texas, as the highest-ranking in second place, totaling 3.6 million square feet of office space in the pipeline. Across the Lone Star State, Dallas (fifth place) and Houston (ninth place) have an estimated 4.7 million square feet of office space under construction between them. Once again, the shrinking output is expected to have a positive effect on occupancy rates.
Overall, the market outlook for the coming year is likely to be driven by a shift in occupier sentiment toward stabilization, coupled with optimism regarding improvements in financing conditions and an anticipated decline in interest rates.
Specifically, the first half of the year is expected to see sustained leasing activity now that some companies have issued return-to-office mandates, whereas others have settled into more clear, flexible-schedule patterns that better allow them to ascertain their workspace needs for the coming years. However, any significant drops we might see in terms of office vacancy rates will likely rely more on the limiting of new stock.
Furthermore, contrary to initial expectations of a surge in conversions driven by declining office utilization, we foresee that the rate of conversions in 2025 will remain consistent with recent years.
Austin Deliveries in 2025 Projected to Increase Office Stock by 4%
In line with the progressive reductions in office space output volume, we can also observe a decline in the percentage growth of office stock across markets.
As an example, the roughly 3.6 million square feet of office space currently under construction in Austin, Texas, makes up less than 4% of the city’s inventory. For comparison, in 2024, it was Boston that came out on top for this metric with office projects in its pipeline at the time representing roughly 6% of its overall stock.
Next, Nashville, Tenn., ranked second with 3.6% (or 2.1 million square feet) of office space under development in 2025. Here, the extensive construction efforts at Nashville Yards are an important contributor.
Then, San Diego closes out the podium: The 3.2 million square feet worth of projects in its pipeline represent 3.2% of the city’s total office stock.
That said, the contraction of office development is most evident across markets such as Los Angeles; Manhattan, N.Y.; Chicago; and Washington, D.C., where the percentage-stock increases for offices falls below the 1% mark.
More precisely, in Manhattan, N.Y., after the completion of a series of projects that broke ground before the pandemic, output dropped from 13 million square feet in 2023 to about 3 million square feet in each of the next two years. Los Angeles followed a similar pattern as new office developments went from representing 3% of stock in 2021 to less than 1% in 2025.
Tallest Skyscraper Under Construction is #1 Among Top U.S. Office Deliveries in 2025
JPMorgan’s 270 Park in Manhattan, N.Y., tops the list of U.S. office projects expected to be completed this year. Built on the former site of the Union Carbide Building (which was demolished in 2021), the 2.5-million-square-foot tower is one of the tallest recently constructed skyscrapers in the U.S., standing at 1,388 feet.
Designed by Foster + Partners, the property will be the global headquarters of the bank upon completion. In alignment with city legislation prohibiting the use of natural gas in new buildings after 2027, the structure will be entirely powered by hydroelectric energy. Furthermore, and demonstrating a strong commitment to sustainability, 97% of materials from the old building were diverted from landfills through creative reuse and recycling.
In second place, we find Microsoft’s redevelopment of its 2-million-square-foot Redmond, Wash., campus. The endeavor will see the company replace 12 existing office buildings with 17 new structures.
Designed with pedestrian and cyclist accessibility in mind, the campus will feature ample open spaces, along with walking and running trails. There will also be no internal roads. Instead, all vehicle traffic will be directed to perimeter roads and an underground garage. Additionally, retail shops, restaurants, and sports facilities are some of the on-site amenities that will be available to Microsoft employees. Originally started in 2017, the project is scheduled for completion in Q1, despite stops in the construction of several buildings throughout 2022.
Otherwise, the completion dates for the likes of the 1.3-million-square-foot Terminal Warehouse Development in Manhattan; the 1-million-square-foot Sherwin-Williams Global Headquarters in Cleveland; and Tower 1 at Bellevue 600 in Bellevue, Wash., (which were all previously expected to come online by the end of 2024) have been pushed back.
In the case of the Terminal Warehouse and Cleveland projects, the new handover date is estimated to be in the opening months of 2025. Amazon’s Bellevue, Wash., development should wrap up by the fourth quarter.
Of course, Southern office development will also be attracting plenty of attention this year as the region is tied with the West for the second-highest number of entries among the top 20.
The highest-ranking entry from this region is Lincoln Property’s office development in Austin, Texas. Sitting in ninth place, the 833,000-square-foot building is projected to be completed by the second quarter of 2025 and will provide tenants with a wide range of “health- and wellness-inspired amenities,” according to the owner’s website. The property will feature roughly 16,600 square feet of ground-floor retail space; a 20,000-square-foot plaza and outdoor bar with direct access to Republic Square Park; and private terraces on every office floor.
Looking further down the list of projects in the South, it’s worth noting that while the 610,000-square-foot Harbor Point project in Baltimore is a recurring entry from last year, all other projects are newcomers to the ranking.
With the exception of 2405 Governor Hunt Road in Charlotte, N.C. — which will be occupied by its owner, The Vanguard Group — and the aforementioned Harbor Point (expected to have single-tenant occupancy), these office spaces have multi-tenant occupancy.
Boston’s 960,000-Square-Foot Fenway Center: Largest Life Science Project Under Construction
While the majority of the largest office projects in the pipeline fall under the traditional office space category, the ranking also includes five life sciences projects; two research and development spaces; and a creative office.
Most of these are located in Northeastern markets (Boston, northern New Jersey, and Philadelphia) and have relatively smaller overall square footage, albeit above the 500,000-square-foot mark.
Spanning the Massachusetts Turnpike, IQHQ’s 960,000-square-foot Fenway Center in Boston (ranked sixth among the top 20 office deliveries in 2025) is the largest of these life sciences projects. The property is scheduled for delivery by the second quarter of 2025. It will be part of a transformative, green-energy-oriented, 1.3-million-square-foot, mixed-use development that will also include a 12-story, mid-rise building and a shared automated garage.
In addition to access to public transportation with convenient access to the Lansdowne MBTA Commuter Rail Station, the site is also within proximity of BOWER — a recently developed complex boasting 312 luxury apartments and 38,000 square feet of amenity-rich retail space — as well as Fenway Park and the bustling Lansdowne Entertainment District.
On the opposite coast, Kilroy Realty is already looking to showcase its spec lab suites at the second phase of its Oyster Point in San Francisco to prospective tenants before the biotech project is wrapped up (current estimates point to Q4). The proactive move comes at the tail end of a cooling of investor interest in lab spaces, which rose significantly during the outset of COVID-19.
The 865,000-square-foot life sciences space at Oyster Point is part of five-phase development spanning across 39 acres of former landfill. It boasts an outdoor amphitheater, meeting spaces, and a conference center.
Notably, given the changing circumstances in the market, Kilroy Realty is looking beyond the life sciences, aiming to attract a range of tenants and hoping to capitalize on the rise of AI-oriented tech companies within the Bay Area.
Methodology
Data for this article was compiled from CommercialEdge. Deliveries data for the top 20 ranking, along with national construction data, were based on numbers extracted as of February 3, 2025.
We only included properties equal to or larger than 25,000 square feet and that were designated either exclusively or primarily for office use (such as mixed-use, including office space).
Data presented under the top office developments of 2025 includes under-construction projects with estimated completion dates during this calendar year. Final delivery dates may differ. The square footage shown for each entry represents total property size.
Owner-occupied projects were excluded from market totals, but not from the top 20 deliveries list.
Disclaimer
While every effort was made to ensure the timeliness and accuracy of the information presented herein, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete. This report is for general informational purposes only. It does not constitute and should not be relied upon as a basis for any investment decision. The information presented is subject to change without notice and may or may not apply depending on the circumstances. Always contact a qualified investment consultant if you need advice regarding buying, selling or otherwise transacting in any investment.
