U.S. office leasing reached 191.4 million square feet through the third quarter of 2026, up 11.3% year over year, even as businesses face a limited supply of large, high-quality office spaces. The latest market report points to growing demand for competitive properties despite substantial office availability nationwide, according to Savills’ recent report.
Large, High-Quality Offices Are Harder to Find
Across 14 major U.S. markets, only 12.8% of office buildings offer contiguous blocks of at least 50,000 square feet. Options narrow further for companies seeking Class A buildings, prime submarkets, or trophy properties.
Meanwhile, overall office availability fell to 22.3%, down 170 basis points from a year earlier. New office construction is also on track to reach its lowest annual total in decades, potentially limiting future supply.
Office Values Recover Despite Debt Concerns
U.S. office property values rose 4% year over year, the largest annual increase since the second quarter of 2022. However, $134.2 billion in outstanding and potentially distressed office debt remains a challenge for the sector.
Economic Conditions Remain Mixed
Consumer spending and significant investment in artificial intelligence and technology continue to support the U.S. economy. Trade uncertainty, persistent inflation, and elevated financing costs remain risks to future growth.
