Office Real Estate Market: Occupier Outlook

Cresa’s quarterly Office Real Estate Outlook provides occupiers with a data-driven view of the office real estate market, highlighting national trends, key market shifts and the factors shaping leasing decisions across the U.S.

The report examines office vacancy rates, absorption, leasing activity, construction trends and occupier behavior to help companies understand where the market is stabilizing, where challenges remain and how to make more informed real estate decisions.

Looking for a market-by-market perspective? Explore Cresa’s Office Index for a separate view of how office markets are trending over time and whether conditions are becoming more tenant-favorable or landlord-favorable.

Looking for industrial insights? Explore Cresa’s quarterly Industrial Real Estate Outlook for the latest trends shaping industrial occupiers and logistics markets.

Office Recovery Becomes More Selective as Demand Shifts Toward Quality

The U.S. office market showed measured improvement through the third quarter of 2026. Class A absorption remained positive, direct vacancy continued to decline, and new construction stayed limited. Demand remains concentrated in higher-quality buildings that support collaboration, employee experience, and long-term workplace strategies.
The recovery remains uneven. Class B space continues to face weaker absorption and more persistent vacancy, while tenants are taking smaller footprints and taking longer to finalize decisions. For occupiers, favorable leasing conditions create opportunities to upgrade or restructure portfolios, although competition is increasing for the best buildings and locations.

What This Means for Occupiers

• Evaluate Class A upgrades while availability remains elevated and landlords continue to compete for tenants.

• Use persistent Class B vacancy and weaker absorption to negotiate renewals, rightsizing, relocations, and improved economics.

• Measure office utilization before committing to space, and direct investment toward layouts, amenities, and technology that support collaboration and attendance.

Download the full Office Real Estate Outlook report to explore the latest trends shaping the office real estate market, office vacancy rates, leasing activity and occupier strategy across key markets.