Planners and Office Overbuilding

• Published in: Journal of the American Planning Association Vol. 52; no. 2; pp. 131 - 132
• Main Author: Dowall, David E.
• Format: Journal Article
• Language: English
• Published: Chicago Taylor & Francis Group 30.06.1986; Taylor & Francis Inc
• Subjects: Bankruptcy; Capacity; Capital; Cities; Development; Divorce; Legislation; Market analysis; Office buildings; Office space; Planners; Planning; Public buildings; Real estate; Religion; South Africa, Republic of; United States; Vacancies
• ISSN: 0194-4363; 1939-0130
• DOI: 10.1080/01944368608976612

Fantastic overbuilding of office space is taking place across the US and may continue. Some 15 years ago, offices represented 6%-7% of all nonresidential construction. By 1982, the percentage had reached 16%, with the average suburb posting a 51% increase between 1980 and 1983. The result is that some areas, such as Houston and Tampa, have 30% vacancy rates. Yet, office construction is still in a boom. Analysts have suggested that the cause for the overbuilding is partially an economic shift toward white-collar jobs and partly because of the attractiveness of office real estate as an investment. Suppliers of capital are not applying the usual rules of market analysis and credit and lending principles. The effects on planners include: 1. a blight of empty buildings, 2. exaggerated demand for public buildings, 3. increased difficulty in generating revenues, 4. potential bankruptcy for developers, and 5. potential burdens on the public from carrying failed projects.