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US office forecast improves as tenant demand rebounds across more markets

Earlier-than-expected vacancy peak characterizes revised sector outlook, but risks remain
A third quarter characterized by strong leasing activity, paced once again by increased office demand in Manhattan, is behind a brighter outlook for the office sector. (CoStar)
A third quarter characterized by strong leasing activity, paced once again by increased office demand in Manhattan, is behind a brighter outlook for the office sector. (CoStar)
CoStar Analytics
October 27, 2025 | 7:18 P.M.

The national outlook for office is a bit brighter with vacancy halting its rise and absorption turning positive during the third quarter. These and other market signals have contributed to a minor upgrade in CoStar's outlook for the sector.

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News | US office forecast improves as tenant demand rebounds across more markets