CoStar Projects Steady Decline in U.S. Office Vacancy

ARLINGTON, Va.--(BUSINESS WIRE)--U.S. office vacancy is expected to remain steady through 2026 before beginning a gradual decline, according to a revised forecast from CoStar, the leading global provider of online real estate marketplaces, information and analytics in the property markets.

National office vacancy continued to retreat in the second quarter of 2026, dropping slightly below 14% and shifting 30 basis points below its mid-2025 record peak. Between July 2025 and June 2026, office suppliers occupied 17 million square feet of net new space, which was only the second sustained period of positive net absorption since 2020.

Net absorption is expected to be 13 million square feet in 2026 and five million square feet in 2027, a downgrade from the previous forecast, which anticipated annual net absorption of 17 million square feet and six million square feet, respectively...   ...more

RSK: Again a bit of good news. Seems Ai is taking some jobs away, but companies are looking for more space per individual. Will that trend continue?