The U.S. office market is entering a new phase, as the strongest leasing quarter since 2019 and tightening fundamentals signal early-stage stabilization, set against a mixed economic backdrop and persistent structural headwinds. We’re pleased to share the latest State of the U.S. Office Market, our quarterly report offering key insights into office leasing dynamics, availability trends and capital markets activity.
A few noteworthy facts from our research:
- U.S. overall availability declined to 23.1% in Q1 2026, down from 24.8% one year ago, with nearly 88% of tracked markets recording year-over-year decreases; recovery remains uneven across geographies.
- Leasing activity reached 61.2 million square feet (msf) in Q1 2026, the strongest quarter since 2019 and marginally above the pre-pandemic quarterly average of 60.6 msf.
- Tenant demand remains highly selective and concentrated in best-in-class assets, as the availability gap between trophy and lower-tier space continues to widen.
- Sublease availability is down 36% from its peak, though still above pre-pandemic norms, indicating continued normalization of excess space.
- Investment activity is gaining traction, with sales volume rising year over year and cap rates stabilizing; however, elevated levels of outstanding office debt and upcoming maturities continue to pose challenges for the sector.