Demand continues to accelerate, but new macroeconomic pressures emerge
13 October 2026
Insight
13 October 2026
U.S. Office Market Dynamics, Q3 2026
Categories:
Authors
Jacob Rowden
- Leasing volume continues to increase, up 6.4% in the last 12 months, with gateway markets leading growth (+13%). While gateway markets have seen the most momentum of late, Sun Belt markets and smaller tertiary markets’ activity more closely mirrors last cycle’s peaks—both have seen >95% of 2019 leasing volume in the past 12 months.
- The market registered its fifth consecutive quarter of positive net absorption with +6.0 million s.f. of occupancy gains, bringing YTD totals to +21 million s.f.
- Technology-led markets have made a notable bounce-back in occupancy gains, with many of the leading markets for YTD net absorption being technology hubs.
- Just 3.5 million s.f. of new office product was completed in Q3, matching the near-record-low delivery volume from Q2. Over the course of the quarter, 9.6 million s.f. was removed from inventory, driving another net decline in U.S. office inventory. Inventory has fallen more than 45 million s.f. from peak levels in late 2023. Only 23 million s.f. is under construction.
- Asking rates continue to marginally increase as landlord leverage is expanding more broadly across Class A markets. Asking rents grew 60 bps QoQ to $40.51 nationally.
- Effective rents have grown exceptionally quickly in trophy and new construction segments as space becomes extremely scarce in most markets.