Research · February 2026
The US office market is entering a bifurcated recovery. Trophy and Class A+ assets in gateway cities are experiencing stabilizing occupancy, while Class B and C properties face accelerating obsolescence and conversion pressure.
National office vacancy stands at 18.7%, down 40bps from the peak. Net absorption turned positive in Q4 2025 for the first time in 8 quarters, led by tech hubs and life science corridors. Sublease availability has declined 22% from its 2024 peak.
Austin, Nashville, and Miami continue to attract corporate relocations. San Francisco is showing early recovery signals as AI companies expand. New York and Boston remain resilient anchored by financial services and biotech tenants.
AI-driven workspace optimization is reducing per-employee space requirements by 15-20%, partially offset by growing demand from AI companies themselves. Smart building technology commands 8-12% rent premiums in competitive submarkets.