Cushman & Wakefield: U.S. Office Recovery Takes Hold as Sublease Space Shrinks and New Construction Hits Multi-Decade Low
Cushman & Wakefield's Q3 2026 U.S. Office MarketBeat shows national office vacancy at 19.8%, down 25 bps year-over-year, the third straight quarter of improvement. Positive net absorption extended to five consecutive quarters, sublease inventory fell to 89 msf — the lowest since Q4 2020 and 33% below its Q1 2024 peak — and just 7.1 msf of new office was delivered year-to-date, roughly one-fifth the historical average. The recovery is uneven: top-tier vacancy is down 215 bps over two years while Class B/C vacancy keeps rising.
Key figures
- National vacancy
- 19.8%
- Ytd deliveries msf
- 7.1
- Net absorption q3 sf
- 50000
- Inventory decline msf
- 42.5
- Sublease inventory msf
- 89
- Construction pipeline msf
- 23
- Sublease decline from peak
- 33%
- Trailing year absorption msf
- 15.5
AI analysis
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