- Expansion activity reached 18% of leasing in YTD 2026, up from 14% in 2025 and 11% in 2024, a new high and an increase of more than 750 basis points in just two years. More than half of that growth has come in the past 12 months, signaling a meaningful inflection in tenant behavior rather than a gradual recovery.
- This rise reflects a clear break from the relatively stable 6% to 11% range that persisted from 2016 through 2023, with expansion gains occurring alongside a pickup in new leases. FIRE tenants lead expansion and new leasing activity, followed by tech then law firms, together making up over 60% of new and expansion driven demand. The market has moved beyond stabilization into a new phase where tenants are not just renewing or right sizing but actively adding space as business visibility improves.
- From the 2023 low of 6% to 18% today, expansion activity has nearly tripled, an increase of more than 1,100 basis points and a clear shift toward growth driven leasing. As demand accelerates and quality options tighten, it is becoming critical for tenants to engage the market early to identify the right opportunities, maintain flexibility, and secure favorable lease terms before competition intensifies amid growing macroeconomic uncertainty.
