Cushman & Wakefield: North American Office Development Viability Will Remain Low Until the Early 2030s as New York Stands Apart
Business Wire•13/11/2026•12:21 ET
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Key Highlights
- ➤North American market rents $77.03 psf, 6% below economic rent in 2026
- ➤Global office pipeline 580 msf, down 45% from 2017 peak
- ➤New York rents $156.64 psf, nearly 60% above economic rent
- ➤Chicago viability delayed until 2032, with Class A vacancy at 24.0%
- ➤Vancouver economic rent expected to exceed market rent through 2035
Expert Statements
Sandy Romero, Head of Office & Alternatives Insights at Cushman & Wakefield
“Demand for high-quality, well-located space is resurging just as the supply pipeline is drying up”
Sandy Romero, Head of Office & Alternatives Insights at Cushman & Wakefield
“Average rents have not kept pace with the cost of building, so in most North American markets new supply will have to be built with the quality and amenities required to get leading rents in order to pencil out. Existing top-tier space is being absorbed faster than it can be replaced, which is driving rent growth in that segment, as well as more lease renewals and earlier occupier searches.”
Sandy Romero, Head of Office & Alternatives Insights at Cushman & Wakefield
“For occupiers, limited new supply means rising competition for top-tier space, so planning well ahead of lease events matters more than ever”
Sandy Romero, Head of Office & Alternatives Insights at Cushman & Wakefield
“For investors and developers, new starts are likely to remain selective. In the meantime, we expect more renovations of existing buildings and more build-to-suit projects, particularly in markets where demand for brand new space is already building.”
Cushman & Wakefield: North American Office Development Viability Will Remain Low Until the Early 2030s as New York Stands Apart
Report finds North American market rents average about 6% below the rent needed to justify new construction, as the global office pipeline falls 41% from its peak
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