Starting rents for the most expensive U.S. premium office space have climbed 33% above pre-pandemic levels, compared with 14% growth at the segment’s median, according to Avison Young’s third-quarter 2026 U.S. office report.
The widening gap shows how demand is increasingly concentrated in the highest-priced buildings, even as office activity remains below pre-pandemic levels.
Top-Tier Office Rents Outpace the Rest of the Premium Market
Between 2017–2019 and 2024–2026 year to date, starting rents at the 95th percentile of the premium office segment grew about 2.4 times faster than the segment’s median.
Manhattan and San Francisco recorded some of the clearest divides, with demand for top-tier space outpacing the wider premium market. Boston and Chicago saw more balanced rent growth within the segment.
The findings suggest that a premium building designation alone does not guarantee the strongest rental performance. Location and a building’s position among its high-end competitors also matter.
Falling Office Availability Does Not Always Mean Stronger Demand
Availability declined over three years in both trophy/Class A and Class B/C buildings in 20 of the 32 markets tracked by Avison Young. However, the report identifies different reasons for the declines.
In trophy and Class A properties, lower availability was primarily driven by tenant demand. For Class B/C buildings, conversions and demolitions removed office space from the market.
This is important for investors evaluating market strength. Reduced availability in older buildings can reflect a shrinking supply rather than stronger leasing activity.
Manhattan and San Francisco Tighten as Boston and Seattle Add Availability
Manhattan and San Francisco recorded the largest availability declines across both higher- and lower-quality office buildings. Boston and Seattle saw availability increase in both segments.
Office Activity Remains Below Pre-Pandemic Levels
Avison Young’s Office Busyness Index measured U.S. office activity at 63.9% of its August 2019 level in August 2026. The firm reported that building visitation has increased gradually since the pandemic began.
The rent gains at the top of the market therefore come amid an incomplete return to pre-pandemic office activity. Avison Young expects the divide between the strongest buildings and the rest of the market to continue widening as tenants prioritize quality and obsolete properties leave the market.
