The United States is facing a potential shortage of high-quality, low-carbon office space in major markets. According to a recent report on Local Law 97, this deficit is expected to reach 75% by the year 2030. This means that there will be an estimated shortfall of approximately 57 million square feet of low-carbon office space in the near future.
This supply-demand imbalance varies across different cities and is influenced by factors such as industry composition, corporate space needs, and existing property characteristics. For example, New York City has a large concentration of finance and professional services firms which are driving demand for low-carbon spaces due to their commitments towards reducing carbon emissions. However, it is projected that only a small portion of this demand will be met by current development projects by the year 2030.
The rising need for environmentally-friendly offices presents challenges for businesses looking to secure suitable workspace in these markets. To address this issue effectively, developers must prioritize incorporating sustainable features into their projects while also meeting the specific requirements and preferences of tenants within each city’s unique market dynamics.
