Survey respondents said the level of development is about right for the sector, with only some fearing that too much space is being built. In this year’s survey, 56 percent said the level of development is the right amount. An additional 11 percent said there is too little development occurring. However, 21 percent said too much development is taking place, with the remaining respondents saying they are unsure.
There are signs that sentiment in the marketplace might be beginning to shift when it comes to development. The number of respondents that answered “too much” rose six percentage points from the last survey, while the percentage that answered “too little” fell five basis points.
In 2016, approximately 79 million sq. ft. in new office projects will enter the marketplace, according to Marcus & Millichap. At the same time, new businesses and office expansions will gobble up 90 million sq. ft. of office space over the course of the year.
Along with New York City, West Coast tech hubs currently round out the top four office markets, as ranked by Marcus & Millichap. These include San Francisco, San Jose, Calif. and Seattle-Tacoma.