Q3 2025 U.S. office market overview

In Q3 2025, the U.S. office availability rate declined to 22.8% — its fifth straight quarterly drop and the longest streak of tightening since 2016. Total available space fell by 23 million square feet (msf) this quarter, with both direct and sublet space decreasing. Year-to-date leasing activity sits at 203 msf — still 11.9% below 2024 figures and 15.4% under pre-COVID norms. Yet, markets like San Francisco (+47%) and Manhattan (+9%) are approaching pre-COVID demand levels. Leasing activity has been strongest in the trophy segment, with volumes over the past year exceeding pre-COVID averages by 12.5%. In contrast, class A properties are still trailing by nearly 20%, and class B/C assets are down more than 30%.

22.8%

overall availability rate sees fifth consecutive decrease

The overall availability rate for U.S. office space sat at 22.8% in Q3 2025, comprised of a 19.8% direct availability rate and 3% sublet availability rate. Q3 2025 was the fifth consecutive quarterly decline in overall availability — a trend not seen since before 2016.

Quarter over quarter (QoQ), direct available space decreased by 13.2 million square feet (msf) and sublet available space decreased by 9.8 msf, netting a 23-msf decrease in total available space. While the availability rate remains historically high, this quarterly decrease in supply is a positive indicator for the U.S. office market.

207 msf

total leasing activity in 2025 YTD

U.S. office leasing activity totaled 203 msf in the first three quarters of 2025 — down 15.4% from the pre-COVID average (2000–2019) of 244 msf, and 11.9% below 2024’s volume of 234 msf.

However, several key markets are showing strong momentum: San Francisco’s leasing activity is up 47% year over year, and Manhattan’s has risen 9%. Both are at or approaching pre-COVID leasing levels with San Francisco 17% below, while Manhattan trails by just 3%.

+12.5%

growth in trophy leasing over pre-COVID average (2015-2019)

Despite overall office leasing across the country still well below pre-COVID levels, the trophy segment of the market is outperforming historical norms. Over the last four quarters, trophy leasing in major markets is 12.5% higher than the pre-COVID average (2015–2019, rolling four quarters).

Class A product remains 19.9% below pre-COVID levels but has grown in recent quarters as availability in trophy assets shrink.

Class B/C leasing, which was already falling in the years leading up to the pandemic, sits 32.8% below the pre-COVID average.

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