Office Leasing Rises 18% as Vacancy Falls
Newmark reports third-quarter 2026 U.S. office leasing volume reached 62 million square feet across 62 markets.
Updated on Nov. 9, 2026 in Commercial
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U.S. office leasing volume totaled 62 million square feet in the third quarter of 2026, according to Newmark, rising 18 percent year-over-year. National office vacancy fell 50 basis points to 19.8 percent over the same period.
Why it matters
Tenants are increasingly trading up to high-quality office space as pre-pandemic leases expire and pandemic-era downsizing slows. The shift signals a gradual recovery in demand, though leasing remains below pre-pandemic levels.
Newmark's tracker of leases of 10,000 square feet or more shows 62 million square feet leased in Q3 2026, up 18% from a year earlier but still 21% below pre-pandemic quarterly averages. Sublease availability fell 21% year-over-year, though the report does not state when the remaining pre-pandemic leases will expire.
The players
Newmark
Newmark is a global commercial real estate services firm that publishes quarterly office leasing and market data.
The details
Net office absorption was positive for a sixth consecutive quarter through September 2026. The office construction pipeline has fallen to 20.3 million square feet, a 15-year low, while an estimated 42 percent of pre-pandemic leases remain in place.
Timeline
Q3 2026: Office leasing rose 18 percent year-over-year to 62 million square feet.
July through September 2026: Sixth consecutive quarter of positive net office absorption.
End of Q3 2026: Construction pipeline reached 20.3 million square feet, the lowest since 2012.
Market Landscape
Leasing is concentrating in newer, higher-quality buildings while older stock lags, a divergence that widens as pre-pandemic leases expire. Newmark's data shows gateway markets like Chicago and New York carry the highest remaining pre-pandemic exposure, so the recovery will likely be uneven across cities.
Employees and businesses weighing office space may find more choices in higher-quality buildings as leasing improves. Companies planning relocations should expect continued competition for premium space in gateway markets.
The takeaway
The office market is recovering unevenly, with quality and location separating winners from laggards. Businesses and workers should watch lease expirations closely, since remaining pre-pandemic leases will shape future demand.
Further reading
Explore more Commercial real estate coverage for context on how office markets are shifting.
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