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U.S. office demand is clearly recovering, but it has not returned uniformly to 2019 conditions. JLL recorded 207 million square feet of office leasing in 2025, 5.2% more than in 2024, and a post-pandemic quarterly record of 55.1 million square feet in the fourth quarter. The strongest activity is concentrated in newer, highly amenitized Class A buildings and in fast-growing Sun Belt markets, while overall vacancy remains elevated and many older properties continue to lag.
What the latest leasing numbers show
Leasing volume—the flow of newly signed deals—is the clearest evidence that occupier demand is improving. JLL’s U.S. Office Market Dynamics report says Q4 2025 produced a new post-pandemic high for quarterly leasing, at 55.1 million square feet. Full-year leasing reached 207 million square feet, up 5.2% from 2024.
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Those figures describe new transactions, not the amount of space currently occupied. A stronger leasing year therefore signals improving demand without proving that every market, building or tenant has returned to pre-COVID patterns.
The recovery has not moved in a straight line
JLL’s trailing-12-month measure was 89% of typical pre-pandemic activity in Q1 2025, then about 81% in Q2 as transactions slowed. At the same time, tenant requirements rose 5.8% quarter over quarter in Q2 and reached their highest level since Q4 2021. Companies are therefore putting more space into active searches even while completed deals fluctuate from quarter to quarter.
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Which markets are closest to their old peaks?
Sun Belt growth markets reached 94% of their pre-pandemic leasing peaks, the strongest regional result identified in the latest JLL data. Other regions remained further below their historical levels. The evidence supports a regional recovery rather than a nationwide return to one common baseline.
CBRE’s forward-looking indicators also point to improving demand in selected gateway markets. Its Tenants in the Market Index for 11 major U.S. markets was 10 points higher than a year earlier. In Q3 2024, Manhattan, San Francisco, Los Angeles and Boston were above their respective pre-pandemic averages on that measure. This index tracks prospective tenant activity, so it should be read as a pipeline signal rather than a completed-leasing total.
Utilization is rising, but attendance is still below corporate targets
Leasing and utilization answer different questions. JLL’s 2025 Occupancy Planning Benchmark Report measured global office utilization at 54%, up from 49% in 2024. Corporate utilization targets increased by 5% to 79%.
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The gap matters for owners and builders: more employees are using offices, and companies are planning for greater use, but average actual use remains below the level organizations say they want. Return-to-office policies can increase peak-day attendance without filling every desk every day, which helps explain why utilization can improve while vacancy remains high.
Why Class A and amenity-rich buildings are outperforming
JLL reports that leasing is concentrated in newer, highly amenitized Class A buildings and in vibrant Lifestyle Market ecosystems. Tenants seeking a reason for employees to commute are favoring properties with strong transit or neighborhood access, collaborative layouts, wellness features, food and beverage options, upgraded technology and flexible common areas. The data does not establish that every amenity pays back its cost; it shows where current leasing activity is concentrating.
Older or less competitive buildings face a different problem: even when a company needs office space, it may choose to contract into a smaller amount of higher-quality space rather than renew an equivalent footprint in an outdated property. That flight to quality can lift prime leasing while leaving overall vacancy elevated.
Vacancy: improvement in prime space, excess across the broader stock
CBRE expects national office vacancy to top out at around 19% in 2025. Its outlook is more favorable for prime offices, projecting vacancy in that segment to return to a pre-pandemic 8.2% by 2027. These are forecasts, not measured outcomes, and they apply to different slices of the market.
| Indicator | Latest figure | How to interpret it |
|---|---|---|
| U.S. office leasing, 2025 | 207 million sq. ft. | Annual leasing volume; 5.2% above 2024 |
| Q4 2025 leasing | 55.1 million sq. ft. | Post-pandemic quarterly high |
| Sun Belt leasing | 94% of pre-pandemic peak | Regional recovery measure |
| Global utilization | 54% in 2025, versus 49% in 2024 | Actual use, not leased inventory |
| Corporate utilization target | 79% in 2025 | Five percentage points higher than the prior year |
| National vacancy outlook | About 19% in 2025 | CBRE forecast for the overall U.S. market |
| Prime-office vacancy outlook | 8.2% by 2027 | CBRE forecast for prime space, near its pre-pandemic level |
What the rebound means for office construction and renovation
Prioritize projects that improve competitive quality
Owners deciding where to invest should first identify whether a building can compete with newer Class A stock. Upgrades to building systems, energy performance, indoor environmental quality, digital connectivity, shared spaces and tenant amenities are most defensible when they address a documented leasing disadvantage.
Design for variable attendance
With utilization at 54% globally against a 79% corporate target, projects should support both busy peak days and quieter periods. Efficient floor plates, adaptable meeting rooms, reservable work settings and robust shared infrastructure can reduce the amount of permanently assigned space a tenant needs while preserving capacity for collaboration.
Evaluate the market before adding supply
A Sun Belt market at 94% of its former leasing peak is not equivalent to a gateway or secondary market still well below its baseline. Feasibility work should separate direct vacancy, total vacancy, tenant requirements, building quality and local attendance patterns rather than relying on a national average.
Consider repositioning before ground-up replacement
Elevated overall vacancy creates an opportunity to convert or substantially reposition obsolete offices where zoning, financing and physical conditions allow. The case is strongest when a property cannot reach competitive quality through a realistic renovation budget and when local demand supports an alternative use.
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Is return-to-office bringing vacancy down?
It is helping demand and utilization, but the effect is uneven and gradual. Rising utilization, stronger tenant requirements and record quarterly leasing all point to genuine improvement. Vacancy can remain high because companies may lease less space per employee, new deals take time to absorb existing inventory, and demand is disproportionately directed to prime buildings. The current evidence supports “rebounding” rather than “fully recovered.”
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How to read the market from here
- Track signed leasing and the tenant-requirements pipeline separately.
- Compare a property with its local pre-pandemic baseline, not only the national average.
- Measure peak-day attendance and utilization, not just badge activity or nominal headcount.
- Test whether proposed amenities solve a tenant decision problem before committing capital.
- Model prime and non-prime vacancy as different markets with different recovery timelines.
Frequently Asked Questions
Are U.S. companies leasing as much office space as before COVID?
Not nationally and not consistently. Full-year 2025 leasing reached 207 million square feet, while JLL’s trailing-12-month readings during 2025 ranged from 89% to roughly 81% of typical pre-pandemic activity. Sun Belt growth markets were closer, at 94% of their former peaks, but other regions remained further behind.
Are Class A offices outperforming older buildings?
Yes. Current leasing is concentrated in newer, highly amenitized Class A properties, and CBRE forecasts prime-office vacancy could return to 8.2% by 2027 even as total U.S. vacancy remains near 19% in 2025.
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