Cushman & Wakefield: U.S. Office Recovery Takes Hold as Sublease Space Shrinks and New Construction Hits Multi-Decade Low
Business Wire•13/10/2026•16:06 ET
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Key Highlights
- ➤U.S. office absorption reached positive 50,000 square feet in Q3 2026
- ➤National office vacancy fell 25 basis points year-over-year to 19.8%
- ➤Sublease inventory declined 33% from peak to 89 million square feet
- ➤Only 7.1 million square feet of new office space delivered through Q3 2026
- ➤U.S. office inventory contracted 42.5 million square feet over six quarters
Expert Statements
David C. Smith, Head of Americas Insights at Cushman & Wakefield
“The U.S. office market is showing increasingly consistent signs of stabilization”
David C. Smith, Head of Americas Insights at Cushman & Wakefield
“Occupier demand continues, sublease inventory is steadily declining, and obsolete buildings are increasingly leaving the competitive inventory. While conditions vary considerably by market and asset, these trends are creating a stronger foundation for a tightening office market.”
David C. Smith, Head of Americas Insights at Cushman & Wakefield
“The supply side of the office market is undergoing a significant reset”
David C. Smith, Head of Americas Insights at Cushman & Wakefield
“New construction remains historically low while obsolete inventory continues to be removed from the market. Combined with stabilizing demand, that reduction in supply should support further improvement in office fundamentals.”
Cushman & Wakefield: U.S. Office Recovery Takes Hold as Sublease Space Shrinks and New Construction Hits Multi-Decade Low
Positive absorption extends to fifth consecutive quarter as sublease availability falls 33% from peak
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