US Office Market Records Decade High Leasing Volume in Major Early 2026 Resurgence

he US office market sees a major resurgence as tenants sign 120 million square feet of new leases in Q1 2026, marking the highest volume of activity since 2018.

By: AXL Media

Published: Apr 14, 2026, 8:20 AM EDT

Source: Bisnow

New Leasing Momentum and the Shift to Smaller Footprints

The record breaking 120 million square foot total in Q1 was propelled by an unprecedented volume of individual lease agreements, reaching a ten year peak in terms of sheer transaction count. However, data from CoStar indicates that while activity is high, the average size of new leases remains roughly 15% smaller than pre-pandemic benchmarks. This "intensification of patterns" reflects a strategic pivot by companies toward shorter, more fluid terms that prioritize agility over sprawling square footage. Landlords are increasingly accommodating this demand by subdividing larger floor plates to meet the needs of a wider variety of mid-market tenants who are leading the current recovery.

Geographic Disparity and Financial Sector Leadership

Leasing recovery remains uneven across the United States, with roughly half of the nation's largest markets nearing or exceeding their 2015-2019 averages. Financial hubs are leading the pack, bolstered by banks and financial institutions that have aggressively mandated in-office attendance. Charlotte has emerged as a standout performer, with major expansions from Citigroup, JPMorgan Chase, and Sumitomo Mitsui Banking Corp. Similarly, New York City, Miami, and San Francisco have seen leasing activity climb above their historical averages. Conversely, cities like Atlanta, Washington, D.C., and Chicago continue to struggle, with leasing volumes still languishing more than 20% below their pre-pandemic levels.

Market Drivers and Strategic Corporate Positioning

The primary catalyst for this leasing boom is the exhaustion of the "wait-and-see" approach that characterized corporate real estate strategy between 2021 and 2024. Companies are now moving forward with long-term decisions to secure high-quality space as they finalize their hybrid or full return-to-office (RTO) models. Strategic positioning is currently focused on "flight to quality," where newer buildings with premium amenities are capturing the lion's share of new signatures. This has created a bifurcated market where trophy assets see intense bidding while older, secondary office stock remains difficult to fill, further widening the gap in performance between Class A and Class B properties.