London Office Construction Outpaces New York with Largest Gap in 20 Years

The gap between office construction volumes in London and New York City reached a record high in the second half of 2025, highlighting a stark divergence in commercial real estate activity. Office space under construction in London now exceeds New York's comparable figure by more than 10 million square feet, with London hosting 16 million square feet versus just 5.7 million in New York. This disparity marks the widest construction gap between the two global financial hubs in over twenty years, according to CoStar Group data. While London has aggressively expanded its pipeline, New York has faced a steady decline in construction starts since 2018. Analysts are closely monitoring the impact of this significant supply influx on UK REITs, even as the gap is expected to begin narrowing in early 2026.