U.S. Office Reports

Key OFFICE Takeaways For Q2 2026

• Office fundamentals continue to accelerate. Tenant demand has steadily been increasing. The 4-quarter rolling absorption total hit +14.3 million square feet (msf) in Q2 2026, which is the strongest reading since 2020 and marks the seventh consecutive quarter of improvement. 


• Vacancy is easing as supply-side pressures fade. National vacancy declined by 10 basis points (bps) year-over-year (YOY), supported by the continued lease-up of sublease space. Available sublease inventory has now fallen 28% from its cyclical peak, while new office deliveries have slowed to a 14-year low. With just 19.7 msf under construction, the pipeline remains near its historic low, limiting new supply in the coming years. 


• The office market is evolving. Conversions, demolitions and repositioning of projects are steadily removing obsolete buildings from inventory, particularly in major urban markets. U.S. office inventory has declined by 0.6% (-33 msf) over the past five quarters. 

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