Real Estate

Builder Skanska Says Tepid Return-to-Office Is Hurting US Growth

A contractor at a Skanska construction site in Lorton, Virginia.

Photographer: Andrew Harrer/Bloomberg

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Swedish construction group Skanska AB is putting its growth ambitions for commercial property development in the US on ice as demand has been hampered by the tepid number of workers returning to the offices.

“There’s a big hesitation among tenants to expand or sign up for new space,” Executive Vice President Claes Larsson said during a webcast presentation on Wednesday. “We’re lagging behind in leasing compared to what was assumed when we started a lot of the projects.”