- Leading CRE firms like CBRE, JLL, and Cushman & Wakefield are seeing record leasing activity and profits, reflecting a sharp turnaround in the US office market.
- Office demand is rising in both major and secondary markets, with companies signing longer leases and expanding space.
- Limited new construction is pushing up competition for high-quality buildings, setting the stage for a landlord-friendly market in 2026.
Office Market Turns a Corner
According to CoStar, after years of weak demand, the office market is bouncing back. Firms such as CBRE, JLL, Cushman & Wakefield, and Hudson Pacific Properties have posted some of their strongest leasing revenues to date. Hudson Pacific, for example, expects one of its best leasing years ever.
CBRE CEO Bob Sulentic noted that “COVID-19 is so far in the rearview mirror,” and said office space is regaining its traditional role as a core asset class.
Leasing Activity Hits Post-Pandemic High
While the national vacancy rate remains high at 14%, leasing momentum continues to build. Tenants signed 12M SF of deals in Q3—the highest quarterly total since 2019.
Companies are returning to the office, and tech firms—especially in the AI sector—are leading large lease signings. Many tenants are now committing to longer leases, helping reduce the gap between leased and occupied space.
Construction Lags as Demand Heats Up
New office construction is near record lows. Developers have added only 8M SF of space nationwide in 2025, putting the market on track for the smallest annual total since 2011.
Hudson Pacific’s Mark Lammas said the lack of new inventory gives landlords a rare edge. “Usually you’re competing with new supply, but that’s not the case now,” he said.
CoStar expects office occupancy to grow by 10M SF over the next year—a sharp turnaround from earlier projections that predicted a loss.
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Broad-Based Growth Beyond Gateway Cities
Demand is no longer limited to New York or San Francisco. Companies are signing bigger leases in smaller cities as they seek high-quality space at lower costs.
Marcus & Millichap CEO Hessam Nadji said more employers are asking workers to return. He reported that average daily office attendance has reached 80% of pre-pandemic levels, up from 57% last year.
Why It Matters
Office leasing is no longer dragging down commercial property firms. Brokerages are seeing rising revenue, with CBRE, JLL, Cushman & Wakefield, Colliers, and Newmark all reporting double-digit gains in Q3.
As tenants show more confidence in long-term space needs, landlords are gaining more pricing power—especially with so little new supply.
What’s Next
The market is nearing a turning point. With demand rising and supply tight, 2026 could mark the return of a true landlord’s market.
Firms expect more growth as companies move away from remote-first models and lock in space in competitive markets. CRE analysts say the office sector is finally entering a new expansion cycle.
