Office Construction Hits 10-Year Low: How Brokers Are Turning Shrinking Inventory Into Competitive Advantage

TL;DR

1. Office construction collapsed 89% from 83 million SF in 2019 to 9.1 million SF in 2024/25 according to CommercialEdge, creating the tightest inventory market in 15 years.
2. For brokers, this means tenant leverage expires within 18 months as prime vacancy returns to pre-pandemic levels and clients who delay face shrinking inventory.
3. With laiout you assess shrinking shortlists in hours, prove to clients why waiting is costly with visual scenarios, and win landlord attention.

Why this matters for commercial brokers

Yardi Matrix reports only 54.7 million square feet under construction nationwide in the US, the lowest in a decade. Boston's pipeline dropped 50% year-over-year to 8.7 million square feet per Commercial Observer. This creates pressure:

- Tenant leverage expires by 2027. Current vacancy sits at 19.8% and tenants command record concessions. But when new supply drops 89%, available Grade A space becomes scarce. Brokers who secure leases at 2025 rates will be remembered as strategic advisors.

- Prime inventory is constrained. Gateway markets show 35-60% pipeline declines with Boston down 50%, San Francisco from 7.2 million SF to 3.5 million SF.

- Speed will be critical to win quality mandates. When there are fewer viable options available, the broker who's able to support their tenant at speed is going to secure the deal.

How laiout helps you turn this into brokerage advantage

- Assess the shrinking shortlist fast: When there are fewer viable buildings available, upload every floor plate and generate test-fits in 10 minutes per building. Show clients "Here are the three buildings that work" within 48 hours.

- Prove to clients why waiting is costly: Generate side-by-side visuals showing today's market versus 2027. Clients understand the commercial impacts visually and move with urgency.

- Get landlord attention: When inventory is scarce, present test-fits showing your tenant fits their space perfectly. You move from "I might have a client" to "Here is proof my tenant works."

FAQs

Q1: What if my client insists on waiting for rates to drop?

Show the trade-off visually. Demonstrate that lower rates in later in 2026 mean picking from limited inventory with zero concessions versus securing space today with strong allowances.

Q2: How do I prove I am bringing serious tenant interest?

Present test-fits in first meetings. Generate a feasibility showing your client's programme mapped to floor plates before walking in.

Q3: Is this creating false urgency?

The data is public. CommercialEdge shows 9.1 million SF started in 2024 versus 83 million in 2019, an 89% decline.

Position clients ahead of the market shift

2025 is the last window of strong tenant leverage before inventory constraints hand pricing power back to landlords. Brokers who move clients through decisions now will be remembered as advisors who saw the shift. If you are ready to test buildings instantly and present visual scenarios, laiout gives you the speed to lead. Book a demo with laiout today.