May 2026
Office Market Update: Signs of Stabilization Emerge
The national office market remains challenged, but signs of stabilization are emerging. CommercialCafe’s latest data shows leasing activity improving in select markets, particularly for high‑quality, well‑located assets. As companies refine hybrid work strategies, demand is becoming more focused rather than disappearing altogether.
Key takeaways:
- Vacancy remains elevated nationally, reflecting ongoing space optimization.
- Leasing activity is improving in major metros and for Class A properties.
- Suburban office markets continue to gain traction as tenants seek flexibility and lower occupancy costs.
- Rents are stabilizing, with modest upward pressure in stronger submarkets.
