Office Conundrum

Since the end of last decade's economic recession, hotel construction has boomed, industrial space can't seem to be developed fast enough to meet tenant demand and apartments have been built at a pace not seen since post-World War II.

Even the supposedly troubled retail sector has added millions of square feet of space along the Gulf Coast, though much of that has come in the form of new restaurants or single-tenant, net lease deals by the likes of Starbucks or CVS Pharmacy.

But new office development has lagged, despite declining vacancies, rising rental rate and the population and white-collar job growth that typically leads to new construction.