None of this suggests there are not some good opportunities for new construction, but the office building’s role as a key indicator of the strength of the U.S. economy has faded. In great cities, rather than a ballyhooed era of new office skyscrapers we will see more conversions and the construction of residential high-rises, as well as medical buildings. The secular trend is for the dispersion of business service employment to smaller markets, and into people’s homes. The glory days of the American office tower are over, and not likely to return soon, given technological trends and a persistently tepid economy (emphasis added).The relative strong areas: the Washington metro area market--and suburban office development. Still, the trend is for a weak market for office buildings--and a possible bubble in the making.
Read Dr. Kotkin's article here in NewGeography.com.