Office Space May Be Down But Not Out

Even though in many regions in the United States there is a flood of office sublease space and there are reports that Corporate America may be giving up 25% of all their office space, long-term, due to partial or total remote working, there are still tens of millions of feet of new office projects in the works throughout the United States. As one example, in downtown San Jose there are a group of real estate developers planning to build 5 million square feet of office space to house 40,000 workers, on top of the Google project which has plans for 8 million square feet of new office development. There are similar office projects planned in many other regions of the U.S.  What if companies give back 25% of the six billion square feet of office space they currently occupy? (yes, 1.5 billion square feet of potentially vacant office space…) Will this collide with the new office space now being planned?