Office Conversions and Demolitions Will Exceed New Construction in 2025 For the First Time in Several Years, Aiding the Office Market Recovery

For the first time since at least 2018, more U.S. office space will be removed through demolition or conversion than added via new construction, signaling market stabilization. Nationally, 23.3 million sq. ft. will be removed versus 12.7 million sq. ft. added. Orange County will see a net office inventory reduction, with many office-to-multifamily conversions underway. Multifamily conversions dominate, comprising 76% of projects, adding thousands of housing units and aiding neighborhood revitalization.