Office 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 Real Estate Market Stabilizing, but Still Uneven Amid Structural Shifts

The long-awaited rebound in the office market has officially begun, as net absorption has turned slightly positive and the number of available spaces has been declining for nearly two years. However, it will take time to recover from the losses in occupancy. A stagnant construction pipeline and property conversions have helped balance the oversupply.

Performance has not been uniform; markets such as New York, Dallas, Houston, and San Francisco have outperformed others. Leasing activity has shown modest improvement compared to levels seen in 2023-2024, but much of this activity consists of renewals and relocations to higher-quality buildings, rather than net new absorption. To attract and retain tenants—especially in struggling submarkets—landlords are continuing to offer incentives, such as free rent and robust tenant improvement allowances.

Financial services firms, law firms, and companies in the artificial intelligence sector have been particularly active in the market. Despite these improvements in performance, risks remain due to weak job creation among knowledge workers, which is essential for a sustained recovery.

What This Means for Occupiers

• Companies favor flexibility in lease terms, prioritizing shorter lease durations, expansion/contraction options, and flexible space solutions to manage uncertainty around future headcount and office usage.

• Persistent elevated vacancy in many markets is giving tenants greater negotiating power, resulting in higher concessions, improved lease economics, and more customization of space.

• Continued workplace experience and utilization emphasis is being placed on how space is used rather than how much space is leased, investing in layouts, amenities, and particularly technology that support collaboration, employee engagement, and 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.