Office sentiment weak among property pros heading into second half of 2025
Market participants say they are far more optimistic regarding prospects of other real estate types
Commercial real estate professionals polled by CoStar’s Market Analytics team are still generally sour on the office sector. Nearly half say conditions are still below average, and...
Office leasing diverges this year
As recovery in demand surges in some markets, the first-half gap between high and low performers widens
Office leasing activity edged higher in the first half of the year, though overall leasing volume remains stubbornly below its typical level from the late 2010s. While a few market...
These US tertiary market trends could continue
Some new occupant behaviors characterize the emerging balance in the office market
With office vacancy rates stabilizing and leasing activity rising sharply in the first few months of 2025, the United States office sector is finally showing signs of recovery. How...
Office leasing edges higher with more usage
Increased attendance helps counterbalance stagnant payrolls as leasing activity recovers
Office occupiers have been active so far in 2025, pushing leasing activity closer to its pre-2020 norm despite a near-standstill in job growth among the primary knowledge industrie...
The office recovery is at last underway, but it's still not widespread
Demand is driven by only a few big markets
The pace of office occupancy losses has slowed dramatically over the past 12 months, and surging leasing activity indicates that the long-awaited recovery is at last underway.
Here’s why medical office buildings are still outperforming traditional offices
Consistent demand, sticky tenants and restrained supply make healthcare-oriented spaces a bright spot
Medical office buildings have demonstrated stable performance for the past few years, presenting a marked contrast with traditional offices.
Volatile economic outlook overshadows office forecast
Recovery from shift in structural demand is underway, but uncertainty looms
A strong first quarter of occupancy gains and leasing activity has placed the office market on the road to recovery, but uncertainty surrounding trade and fiscal policy threatens t...
Latest from DOGE: Over 15 million square feet of federal property coming to the market
While the US government’s real estate reduction plans evolve, the overall scope emerges
Information on the federal government’s plans for its leased and owned real estate has come in spurts since the U.S. Department of Government Efficiency or DOGE first announced pla...
Upgraded office buildings have a strong record in recoveries. This time could be different.
Building renovations slow as price discovery grinds on
Increasing demand and a diminishing construction pipeline have the U.S. office sector poised for recovery, a time in which recently renovated buildings have historically performed ...
US office leasing bounces back to start 2025
Activity surges to highest level in more than five years
Growing economic uncertainty was not enough to stem the tide of tenants’ appetite for U.S. office space in the first quarter of the year.
Preleasing is up. Construction is down. So why is so much space available in new office buildings?
Tenants in some markets find not all new buildings are good fits
A rapidly shrinking construction pipeline has become a major force in the national office market just as demand has stabilized. The interaction of the two supply and demand trends ...
Government lease terminations could put hundreds of buildings at risk of distress
While federal move-outs are likely to be scattered, many landlords stand to suffer
Right-sizing the federal government’s real estate footprint has long been proposed as a means of saving taxpayer money. A CoStar analysis suggests the new administration's possible...
What comes next for offices? We asked these experts.
Executives from major brokerages share their market insights
It has been five years since the onset of COVID-19 profoundly disrupted social and economic activity around the globe. While lockdowns and social distancing have become distant mem...
For office, new conditions bring changing expectations
A lot has changed in five years for a sector looking to rebound
Increasing demand for office space in recent months is spurring hopes that a lasting recovery may finally be underway. As prospects for the office sector start to brighten, a wider...
Office demand reconnects with job growth
These buildings face a multilayered employment outlook for industries that occupy them
A clear shift in the dynamics of the office occupancy market occurred in the last quarter of 2024 with move-ins exceeding move-outs by a substantial margin for the first time in tw...
The office sector's outlook is brightening
Recent performance trends could signal a broader recovery, but risks remain
Demand for office space turned meaningfully positive at the end of 2024 for the first time since 2021. Meanwhile, the U.S. office market has entered a period of historically low su...
Stable office leasing provides base for recovery in demand in the year ahead
Leasing volume holds steady throughout 2024 but remains below its historical average
Office leasing has found a new level, one that is lower than it was before the pandemic hit in 2020 but still strong enough to support demand growth as move-outs decline.
What to watch for in 2025: Another opportunity for office renovations
With new construction scarce, office buildings with 'good bones,' optimal locations could get refreshed
The office market is running out of the kind of space that tenants want, even as overall vacancy reaches historical highs. Upgrading existing buildings to meet current demand may s...
What to watch for in 2025: Office demolitions to accelerate
The year ahead could see the beginning of a systematic reduction in office inventory
As the office sector emerges from a generational shock to overall demand, many buildings that once buzzed with activity now struggle to attract occupants.
As office construction dries up, overall availability begins to contract
Recent peak signals tighter market for competitive office space
Over the past six months, the amount of available office space has decreased, receding from the record high set earlier this year. Meanwhile, office vacancy has continued its histo...