Yet another sector with overcapacity

Thanks to Calculated Risk for pointing out a piece from the WSJ titled : Office Rents Increase As Demand Stays Cool:

Three tidbits from the post:
-Demand for office space in the U.S. remained sluggish in the first quarter ...
-developers will open 76 million square feet of new office space by the end of this year...
-CR estimates that current office space absorption rate is about 8 to 10 million square feet per quarter

So, given that the next three quarters will see a supply increase of 76 million square feet and absorption is 10 million square feet per quarter, that leaves us with excess supply of 46 million square feet at the end of the year.