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.

The U.S. Office Real Estate Market Continues Its Gradual Recovery as Demand Shifts Toward Quality

The U.S. office market continued to stabilize in the first half of 2026, bolstered by increasing leasing activity, positive net absorption, and a notable slowdown in new construction. Demand is primarily focused on Class A buildings that offer extensive amenities, as companies prioritize employee experience, collaboration, and long-term workplace strategies. Although overall vacancy rates remain high by historical standards, conditions are improving. New supply is at its lowest level in decades, sublease availability is decreasing, and more companies are making long-term occupancy decisions.

For occupiers, the market remains highly favorable despite improving fundamentals. The recovery has also not been uniform, as some markets such as New York, Miami, and Dallas are thriving more than others. Looking ahead, constrained construction activity and steady leasing demand are expected to gradually rebalance the market, although recovery will continue to vary by geography, building quality, and industry sector.

What This Means for Occupiers

• Capitalize on favorable leasing conditions by evaluating opportunities to upgrade into higher-quality buildings while landlords continue to offer competitive concession packages.

• Leverage strong tenant position by prioritizing flexibility through negotiating lease structures and workplace solutions that can adapt to changing headcount, technology, and business requirements.

• Focus is shifting from the amount of leased space to its usage, emphasizing investments in layouts, amenities, and especially technology that foster collaboration, improve employee engagement, and encourage higher in-office 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.