CoStar Projects Steady Decline in U.S. Office Vacancy
CoStar's revised forecast indicates U.S. office vacancy retreated to slightly below 14% in the second quarter of 2026, shifting 30 basis points below its mid-2025 peak. The company projects net absorption of 13 million square feet in 2026 and five million square feet in 2027, driven by a shrinking inventory and a historically low pipeline of 50 million square feet.
Key figures
- Pipeline volume
- 50 million square feet
- Vacancy change bps
- 30
- Q2 2026 vacancy rate
- slightly below 14%
- Net absorption 2025 2026
- 17 million square feet
- Inventory decrease past year
- 7 million square feet
- Net absorption forecast 2026
- 13 million square feet
- Net absorption forecast 2027
- 5 million square feet
- Monthly unique visitors q2 2026
- 118 million
AI analysis
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