U.S. office market dynamics have entered a new phase of recovery, with H1 2026 demand reaching levels that would have marked a strong first half even before the pandemic. The growing momentum in office demand underscores the resilience of U.S. occupiers, who have continued to make leasing decisions despite ongoing macroeconomic uncertainty.
Highlights from the report:
- At 127.3 million square feet (msf), H1 2026 delivered the strongest first-half leasing volume since 2019, finishing 13% ahead of last year and well above every post-pandemic first-half total.
- Tenant demand remains concentrated in best-in-class assets, supporting rent growth at the top of the market as availability for premium space continues to tighten.
- Nearly 82% of tracked U.S. markets recorded a year-over-year decline in office availability, while another 9% remained relatively stable, underscoring continued improvement in market fundamentals.
- First-half 2026 investment volume increased 15% year over year, signaling continued improvement in market liquidity despite a slower second quarter.
- Economic conditions remain mixed, with GDP growth slowing to 1.5%, inflation holding at 3.5%, and labor market conditions softening as payroll growth moderates.