Which U.S. office markets are seeing a class B rebound?
In the post-pandemic era, tenant demand has shifted sharply toward high-quality office space, driving a surge in leasing activity for trophy and class A buildings. As a result, lower-quality assets have borne a disproportionate share of the market downturn, with class B leasing activity currently 26% below pre-pandemic levels.
However, momentum is building in lower-tier properties—a signal of a broader market comeback. Class B leasing activity is surging, with San Francisco leading the charge at 34% year-over-year growth. Manhattan isn’t far behind, boasting a robust +22%, while Dallas is on an upswing with a noble +16%.
Other gateway cities like Boston and Chicago continue to face challenging market conditions. Class B activity has declined by 15% and 14% year over year, respectively, and remains significantly below pre-pandemic levels—down 44% in Boston and 40% in Chicago.
