The U.S. office market continued its recovery during the first half of 2026, with leasing activity reaching its strongest first-half performance since before the pandemic, according to Savills’ Q2 State of the U.S. Office Market report.
Office leasing totaled 127.3 million square feet in the first six months of the year, up 13% from the same period in 2025 and exceeding every post-pandemic first-half total.
Premium Offices Continue to Lead Demand
Companies remain focused on leasing high-quality office space, keeping demand concentrated in premium buildings. That trend is tightening availability at the top end of the market and supporting rent growth for best-in-class properties.
Market conditions also continued to improve nationwide, with 82% of tracked U.S. office markets reporting lower office availability than a year earlier, while another 9% remained largely unchanged.
Investment Activity Picks Up
Investor confidence also improved during the first half of the year.
Office investment volume rose 15% year over year, signaling stronger market liquidity despite a slower second quarter.
Recovery Continues Despite Economic Headwinds
The office market’s gains came as the broader economy showed signs of slowing. GDP growth eased to 1.5%, inflation remained at 3.5%, and payroll growth moderated.
Even with those challenges, businesses continued signing leases, suggesting office demand has remained resilient despite ongoing economic uncertainty.
