Philadelphia’s commercial office sector stands at a crossroads, influenced by evolving work patterns and economic shifts. In response to these changes, the General Building Contractors Association (GBCA), in collaboration with IBEW Local 98, commissioned EConsult Solutions to analyze the upcoming decade’s construction trends.
The collaboration resulted in the report, Philadelphia Construction Forecasts 2023-2033, which is backed by industry insights and provides a comprehensive view of both the current state and future prospects of the construction industry.
From The Philadelphia Business Journal:
Philadelphia’s commercial office market is experiencing the beginning stages of what could be a significant transformation and departure from the historical status quo. The adoption of remote and hybrid work models during the pandemic resulted in an oversupply of office spaces, with national estimates suggesting a 10-20% excess of available office spaces.
This excess leads to heightened vacancy rates and an imbalance in supply and demand, specifically in larger office spaces that offer 50,000 square feet of office space. The Philadelphia Construction Forecasts 2023-2033 report predicts a notable downturn in the commercial office sector between 2024 and 2026, resembling a recession within the commercial real estate market.
