CoStar Data Shows London Office Construction at Record High as NYC Sees Sharp Decline

The gap between office construction volumes in London and New York City reached a record high in the second half of 2025, according to data from CoStar, a global leading provider of online real estate marketplaces, information and analytics in the property markets.

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London brought cranes. New York brought conversion plans.

Over 16m sq. ft. of office space was under construction in London at the end of last year, more than 10m sq. ft. above the comparable figure in New York (5.7m sq. ft.), marking the largest differential in London's favour in over 20 years.

New York's construction volumes have fallen sharply since peaking in 2018, when its pipeline was more than double London's. By the end of 2025, office construction in New York City totalled just 5.7m sq. ft., one of the lowest quarterly totals this century [for the area]. In contrast, construction levels in London have largely oscillated between 16 and 17m sq. ft. since early 2022, prior to which levels below 14m sq. ft. were more common.

While demand remains robust for trophy office space in New York, developers have grown increasingly reluctant to build on a speculative basis," Victor Rodriguez, senior director of market analytics at CoStar. "Instead, new construction is being tightly linked to pre‑leasing, with projects advancing only once anchor tenants are secured."

In New York City, 59 deals larger than 100,000 sq. ft. were signed in 2025, totalling more than 14m sq. ft., the highest level since 2019.

"However, the gap between New York and London is set to narrow in the coming years," said Scanlon. "Preliminary data for the first quarter 2026 suggests that the volume of space under construction in London has fallen below 16m sq. ft. for only the third time since 2021, with further declines expected through 2026 and 2027."

The full analysis can be found here.

For more information about the company and its products and services, please visit www.costargroup.com.

About CoStar Group

CoStar Group (NASDAQ:CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group's major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; Homes.com, the fastest-growing residential real estate marketplace; and Domain, one of Australia's leading property marketplaces. CoStar Group's industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible; STR, a global leader in hospitality data and benchmarking; Ten-X, an online platform for commercial real estate auctions and negotiated bids; and OnTheMarket, a leading residential property portal in the United Kingdom.

CoStar Group's websites attracted over 139 million average monthly unique visitors in the fourth quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that forecasted office vacancy rates in Victoria, London, UK, by year end 2026 are not at or around 17% due either to error in forecast or changes in named key events that would lead to such vacancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including in CoStar's Annual Report on Form 10-K for the year ended December 31, 2025 and Forms 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as CoStar's other filings with the SEC available at the SEC's website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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Karolina Capova

Senior Media Relations Specialist

[email protected]