U.S. Office Market Shows Signs of Stabilization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Source: Newsfilter
- Improving Absorption: Despite a negative overall office absorption of -4.0 million square feet in Q1, the four-quarter rolling absorption total reached +5.2 million square feet, indicating a strengthening demand, particularly with Midtown Manhattan's absorption at +8.5 million square feet, the highest in the nation.
- Vacancy Rates Stabilizing: The national vacancy rate held steady at 20.2%, with only a 5 basis point year-over-year increase, as 46 markets recorded declines, marking a significant shift in the market dynamics, especially in San Francisco and Midtown Manhattan.
- Declining Sublease Space: National sublease availability fell to 101 million square feet, down 25% from its peak in Q1 2024, indicating that tenants are recommitting to their spaces and making long-term decisions, gradually removing excess space from the market.
- New Supply at Historic Lows: New office completions dropped 40% year-over-year in Q1, with the four-quarter total at 16.3 million square feet, and the construction pipeline now represents just 0.3% of total U.S. office inventory, suggesting reduced market pressure and a need for creative solutions to meet future space demands.
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Analyst Views on CWK
Wall Street analysts forecast CWK stock price to rise
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 12.760
Low
18.00
Averages
18.75
High
19.00
Current: 12.760
Low
18.00
Averages
18.75
High
19.00
About CWK
Cushman & Wakefield Limited is a global commercial real estate services firm for property owners and occupiers. The Company's segments include the Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC). Its core service lines include Services, Leasing, Capital markets, and Valuation and other. For real estate occupiers, the Company offers integrated facilities management, project and development services, portfolio administration, transaction management and strategic consulting. Its leasing services consist of two primary sub-services: owner representation and tenant representation. It represents both buyers and sellers in real estate purchase and sale transactions, and it arranges financing supporting purchases. The Company provides valuations and advice on real estate debt and equity decisions to clients through various services, including appraisal management, investment management, and financial reporting.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Rising Rental Trends: Global logistics rents are already 36% higher than in 2020, although growth is expected to moderate by 2025, prompting businesses to be more strategic in securing critical locations to manage rising operational costs.
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See More
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See More
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- Project Features: The new development will preserve key historic elements of the building while introducing modern, high-quality interior finishes and amenities, including a fitness center, lounge, and outdoor terrace, aimed at enhancing tenant experience and attracting future residents.
See More
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- Market Expertise: Cushman & Wakefield's deep knowledge of the UK industrial and logistics market will deliver reliable valuation outputs that support SEGRO's business decisions, further solidifying its market leadership.
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See More
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See More
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See More
