At a glance
- All five national brokerages — CBRE, JLL, Cushman & Wakefield, Colliers and Lee & Associates — reported lower vacancy year over year, according to Connect CRE.
- For an office fund, the Class A concentration matters more than the national vacancy figure.
- Leases signed over the past 12 months carried an average footprint increase of 13%, JLL said, even as companies continue to downsize.
U.S. office leasing rose 4% year over year to 63.8 million square feet in the third quarter, the highest quarterly total since the fourth quarter of 2024, according to CBRE.
All five national brokerages — CBRE, JLL, Cushman & Wakefield, Colliers and Lee & Associates — reported lower vacancy year over year, according to Connect CRE. CBRE counted completions of 1.5 million square feet, down 76% from a year earlier, and said 2026 is on track for the lowest annual total since the firm began tracking in 1990.
For an office fund, the Class A concentration matters more than the national vacancy figure. Cushman & Wakefield said two-thirds of third-quarter leasing went to top-tier buildings, against a 10-year average of 61%. Older assets do not inherit that demand, and a falling national vacancy rate says little about them. Inventory is shrinking underneath both tiers: JLL counted 9.6 million square feet removed for conversion or redevelopment during the quarter and said total stock has fallen by more than 45 million square feet since late 2023.
Leases signed over the past 12 months carried an average footprint increase of 13%, JLL said, even as companies continue to downsize. Colliers pointed to demand from AI and tech occupiers, and Lee & Associates credited stricter attendance requirements at major financial firms along with AI-driven startups in San Francisco and Silicon Valley. Construction is rising from a low base: CBRE put total under way at 20.1 million square feet, up slightly and driven largely by new starts in Manhattan and Miami, while Cushman & Wakefield counted 23 million square feet, a 20% increase from its first-quarter low.
CBRE expects 2026 leasing to surpass its 2022 record. JLL expects interest rate volatility to slow some fourth-quarter sales and delay lease decision-making, though it said tenant requirements in key markets remain above year-ago levels. Cushman & Wakefield said the limited construction pipeline should protect fundamentals from economic pressure. Colliers expects gradual improvement rather than a broader recovery.
Leasing dwarfed new construction in the third quarter
U.S. office space, Q3: leased, completed, removed, under construction (million sf)
Reported by the Sectors desk from Connect CRE. Published . Corrections