U.S. Office Leasing Activity Moves Closer to Pre-Pandemic Levels

U.S. office leasing activity reached approximately 115 million square feet during the second quarter as transaction volume approached historic highs.

U.S. office leasing activity continued its recovery during the second quarter of 2026. Tenants signed new leases totaling approximately 115 million square feet.

Second-quarter volume remained roughly consistent with revised first-quarter figures. However, activity still trailed the quarterly average recorded between 2015 and 2019.

The broader recovery has gained momentum since the middle of 2025. Over the past year, leasing volume moved within approximately 9% of pre-pandemic norms.

Meanwhile, the number of office lease transactions has nearly reached an all-time high. That activity signals renewed movement across the national office market.

However, companies continue leasing less space in individual transactions. The average lease size remains approximately 15% below historical levels.

Notably, that gap has remained relatively consistent for the past two years. As a result, more companies are signing leases without returning to their previous space requirements.

The trend reflects an office market with stronger transaction activity but smaller tenant footprints. Additionally, companies continue balancing workplace needs with evolving hybrid work strategies.

Although total leasing has not fully returned to historical averages, the gap continues to narrow. At the same time, elevated transaction volume suggests companies remain active in the office market.

The recovery remains uneven across individual markets and property types. Nevertheless, recent leasing activity points to improving confidence as tenants make longer-term real estate decisions.

*Article courtesy of Costar

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