For the first time in at least 25 years, more U.S. office space is being demolished or converted than newly built, according to exclusive CBRE data cited by CNBC. Roughly 23.3 million square feet of office space is expected to be removed across the top 58 U.S. markets this year, compared to just 12.7 million square feet of new construction. This shrinking inventory is helping ease vacancy rates—currently hovering near 19%— while signaling a slow but steady rebound in office demand.

The net reduction in office space is a potential turning point for the corporate real estate industry, especially for owners and developers focused on high-performing assets, adaptive reuse, and neighborhood revitalization.