Outlook 2026

H2 2025 U.S. office industries insights

A closer look at the data driving commercial real estate strategy for banking, finance, insurance, and real estate (FIRE), life sciences, law firms, and tech sectors.

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Jen Rosenak

    • Principal, U.S. Director of Market Intelligence
    • Market Intelligence
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Jen Rosenak

Marion Jones

    • Principal, Executive Managing Director of U.S. Capital Markets
    • Capital Markets Group
    • Debt & Equity Finance
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two people talking about banking, finance, insurance, and real estate

Banking, finance, insurance, and real estate (FIRE)

H2 2025 insights

25.4%

Top industry leasing new space across the U.S. in 2025

The FIRE industry leased the most space across the U.S. in 2025, making up 25.4% of new leasing activity. The second-highest industry was tech at 17.9% followed by law firms at 9.9%. 
85 months

Average new lease term at the end of 2025

Historically, law firms have signed the longest leases across gateway markets, but FIRE tenants are shifting that dynamic, recording the second-longest average term in 2025. 
45.1%

New deals signed between 10k and 50k sf

Mid-size tenants accounted for nearly half of FIRE leasing activity in 2025, with 45.1% of leases in gateway markets falling between 10,000 and 50,000 square feet (sf).

“Employers increasingly aim for office time to feel like an experience instead of an obligation, prompting management teams and landlords to integrate hospitality-focused design, enhanced amenities, and service-oriented programming.”

Jason Schwartzenberg
Executive Director

Jason Schwartzenberg

Industry leasing activity

The FIRE industry comprised 25.4% of new leasing activity during 2025. This was a 13.7% increase from the same period in 2024. The second highest industry was tech at 18.2% of leasing activity followed by law firms at 9.9%. 
Note: Note: Data is across all U.S. markets
Source: Avison Young Market Intelligence

Lease terms by major industries

FIRE tenants recorded a 12-month average lease term of 85 months for new deals and 66 months for renewals at the end of 2025. Compared with the previous 12-month average, this reflects a 6.4% increase in term length.
Note: Atlanta, Boston, Chicago, Dallas-Ft. Worth, Houston, Los Angeles, Manhattan, Miami, San Francisco. Data reflects 12-month average, direct and sublease. 
Source: Avison Young Market Intelligence

Lease size breakdown

FIRE leasing activity among mid-size tenants made up almost half of all activity in 2025, with 45.1% of leases in gateway markets falling between 10,000 and 50,000 sf.
Note: Gateway markets include Atlanta, Boston, Chicago, Dallas-Ft. Worth, Houston, Los Angeles, Manhattan, Miami, and San Francisco 
Source: Avison Young Market Intelligence

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, Miami, and San Francisco are driving the FIRE sector today.

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, Miami, and San Francisco are driving the FIRE sector today.

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Sara Barnes

    • Manager, Market Intelligence – Southeast Region
    • Industrial
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Sara Barnes

Danny Mangru

    • Senior Manager, U.S. Office Lead, Market Intelligence
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Danny Mangru
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Life sciences

H2 2025 insights

-26.5%

U.S. lab/R&D leasing activity recovery

When measured against pre-pandemic annual averages (2015–2019), leasing activity across all major U.S. life science markets remained below historical norms in 2025, underscoring a still-cautious expansion environment for biotech and pharma occupiers.
$79B

2025 venture capital funding into biotech

2025 delivered a much-needed resurgence in capital flows to the biotech sector, marking the strongest year for venture capital investment since 2021. Funding activity remained highly concentrated, with Boston- and San Diego-based companies capturing approximately 66% of total VC dollars, reinforcing their positions as the nation’s leading life science hubs.
28.2%

Total U.S. lab/R&D availability rate

Overall availability has started to level off, signaling that the market may be approaching an inflection point. Rising leasing activity, combined with a sharp slowdown in new deliveries, is setting the stage for tightening conditions in 2026 as existing inventory is gradually absorbed. 

"Over the past year, the Raleigh–Durham life sciences and lab market has demonstrated remarkable resilience, with long-term fundamentals and major corporate investments continuing to anchor the region’s strength."

Kathy Gigac
Principal, Managing Director

Kathy Gigac

Leasing activity, 2025 vs. pre-COVID averages (2015–2019)

Leasing activity remained below pre-pandemic averages for all major life sciences markets in 2025, with Raleigh-Durham and Boston seeing the strongest recovery compared to the baseline.  
Source: Avison Young Market Intelligence, CoStar

2025 leasing activity in key markets

After a strong fourth quarter, Boston and the Bay Area combine for over 5.7 million square feet (msf) of leasing, which accounted for approximately 70% of total leasing activity overall. 
Source: Avison Young Market Intelligence, CoStar

Biotech VC funding vs. IPOs

Biotech companies received just over $78.8 billion in venture capital funding in 2025 thanks to a large uptick seen Boston and San Diego.
Note: Only includes rounds a-f, seed, and prefunding
Source: Avison Young Market Intelligence, Byte51

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, Miami, and San Francisco are driving the FIRE sector today.

See how Boston, the Bay Area, San Diego, the Tri-State, Philadelphia, Raleigh-Durham, Seattle, and Washington, D.C./Baltimore are driving the life sciences sector today.

Office Busyness Index

Busy places can create vibrant, lively and enriched experiences. Build connectivity and spark energy. And, fuel financial performance.

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Tucker White

    • U.S. Life Science Lead, Market Intelligence | U.S. Office Agency Lead, Market Intelligence
    • Research
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Tucker White

Danny Mangru

    • Senior Manager, U.S. Office Lead, Market Intelligence
    • Market Intelligence
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Danny Mangru
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Law firm

H2 2025 insights

90.2%

Law firm leasing recovery from 2019 levels

Law firm leasing has largely rebounded to pre-pandemic levels, approaching the volume recorded in 2019. The moderation seen year over year reflects limited availability of top-tier space rather than weakened tenant interest. 
59%

Am Law 100 deals in 2025 favored top-tier office space

Nearly 60% of leases signed by Am Law 100 firms —  the 100 largest U.S. law firms by revenue — were executed in trophy and class A+ buildings, while just 3% occurred in class B/C assets.
13.1%

Growth in Am Law 100 relocation term lengths

Am Law 100 firms signed leases averaging nearly 11 years in 2025, a 13.1% increase from 2024. Extended terms have been growing over the last five years as high-quality availability remains low in major markets with limited new construction to aid demand.

"Law firms are expanding office footprints in U.S. markets where clients and talent clusters are densifying, demand for in-person collaboration is strong, and market fundamentals support premium rents; firms are focused on flagship locations that enhance client access and recruitment."

Rick Nash
Principal

Rick Nash

Leasing activity & return-to-office

Law firm leasing reached over 90% of the total activity seen in 2019, signaling strong confidence within the industry. While activity slowed year over year, the decline reflects a shortage of high-quality supply rather than diminishing demand.

Note: Law firms over 10,000 square feet
Source: Avison Young Market Intelligence, Placer.ai

Am Law 100 leasing by class

59% of Am Law 100 deals in 2025 were completed in high-end buildings (trophy and class A+ properties). Availability in high-quality buildings across  major markets stands at just 16.5% and continues to decline.
Note: Boston, Chicago, Manhattan, San Francisco, Washington, D.C. Direct leases only.
Source: Avison Young Market Intelligence

Transaction type and avg. term length, Am Law 100

Am Law 100 firms were nearly evenly split between new or relocation deals and renewals, with the share of renewals increasing over the past four years.

Source: Avison Young Market Intelligence

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, Miami, and San Francisco are driving the FIRE sector today.

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, and Washington, D.C. are driving the law firm sector today.

Office Busyness Index

Busy places can create vibrant, lively and enriched experiences. Build connectivity and spark energy. And, fuel financial performance.

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CONTRIBUTOR

Sean Boyd

    • Senior Analyst
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Sean Boyd

Danny Mangru

    • Senior Manager, U.S. Office Lead, Market Intelligence
    • Market Intelligence
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Danny Mangru
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Tech

H2 2025 insights

24.5%

Tech leasing activity share

While tech has experienced a significant pullback in leasing activity in recent years, the industry regained momentum in 2025 and reached a new post-pandemic high, capturing 24.5% of major-industry leasing activity.
+81.2%

Year-over-year growth in AI-related job postings

AI-related job postings surged 81.2% year over year, far outpacing the information sector's modest 7.5% growth.
$139.5B

AI VC funding in 2025

National venture capital funding for AI companies surged to $139.5 billion in 2025, eclipsing the previous year's $79.9 billion by 74.6%. 

"AI companies are undoubtedly influencing and reshaping the tech culture in San Francisco by emphasizing the importance of in-person work and collaboration to continue developing an industry that is highly competitive."

Ross A. Robinson Jr.
Market Leader, Principal

Ross A. Robinson Jr.

Leasing activity share by major industry

While tech has experienced a significant pullback in leasing activity in recent years, the industry regained momentum in 2025, reaching a new post-pandemic peak in leasing activity share among major industries at 24.5%.
Note: Austin, Boston, Manhattan, San Francisco, Silicon Valley
Source: Avison Young Market Intelligence, LightCast

Tech job postings

AI-related job postings surged 81.2% year over year, far surpassing the information sector's modest 7.5% growth.
Note: Nationwide job postings, full-time employees
Source: Avison Young Market Intelligence, LightCast

National AI VC funding

National venture capital funding for AI companies climbed to $139.5 billion in 2025, up 74.6% year over year from $79.9 billion. 
Source: Avison Young Market Intelligence, Crunchbase

See how Atlanta, Boston, Chicago, Houston, Los Angeles, Manhattan, Miami, and San Francisco are driving the FIRE sector today.

See how Austin, Boston, Chicago, Manhattan, San Francisco, and Silicon Valley are driving the tech industry today.

Office Busyness Index

Busy places can create vibrant, lively and enriched experiences. Build connectivity and spark energy. And, fuel financial performance.

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CONTRIBUTOR

Louis Thibault

    • Manager, Market Intelligence Office - West Region
    • Research
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Louis Thibault

Danny Mangru

    • Senior Manager, U.S. Office Lead, Market Intelligence
    • Market Intelligence
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Danny Mangru
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