The U.S. office real estate market is showing early evidence of a turning point, though the path back to recovery remains gradual and uneven. While stabilization (and even some cautious growth) is beginning to take hold in several major markets, others continue to face challenges, underscoring the fragmented nature of current conditions.
National office real estate trends
- 2025 marked the first year since 2019 without a substantial increase in office vacancy, with leasing volume up 5% year over year. However, average lease sizes remain about 15% below 2015–2019 levels, keeping total leasing volume 5% to 10% below pre-pandemic norms.
- For those seeking space, limited supply in the most competitive buildings is pushing larger occupiers to renew in place and leaving fewer options for smaller occupiers. Some occupiers have slowly begun backfilling other building segments that have recently struggled with occupancy losses.
- Rent growth remains muted at a national level, but varies widely by asset quality and location. Asking rents have seen modest movement since 2020, while effective rents remain shaped by concession strategies rather than rate increases.
- Office development remains extremely limited. Deliveries fell below 40 million SF in 2025, and construction starts remain near record lows due to elevated costs and demand uncertainty.
- Occupiers may benefit from exploring renewal negotiations earlier, considering partial relocations, or leveraging expansions within existing footprints. In some cases, securing space ahead of need may offer more control than waiting for additional options to emerge.
Download the full office real estate market report to learn more
If you’d like to learn more about the nation’s office real estate outlook, download the full report below. This report will give you full insight into the topics mentioned above, along with a variety of other statistics to help you stay ahead of market trends.
