The COVID-19 pandemic has had a major impact on commercial real estate, particularly retail and hospitality locations, as well as urban office spaces. In April 2020, Gallup found that 69% of full-time employed americans were working from home. Some wonder whether this is the beginning of the end of major downtown office buildings, but Andra Ghent, associate professor of finance at UNC, predicts "it’s unlikely that increased technology adoption will affect prime office space in core downtown areas in major cities, where location brings important benefits through networking and access to skilled workers."
In March 2020 US Spending on office construction and maintenance reached an all-time high of $95 Billion, and then declined over the course of the COVID-19 pandemic and lockdowns to $80 Billion in December 2020. Office construction has gone through similar cycles in the past, reaching a low of $34 Billion in February 2011 following the 2008 financial crisis.
Will spending on US office construction be less than $77 Billion USD in 2022?
This question will resolve positively if the average seasonally-adjusted annual office construction spending in 2022 is less than $77 Billion according to the US Census Bureau.
This question may resolve after 2023-07-01 to account for revisions by the US Census Bureau.