Preliminary first-quarter 2026 data from CoStar, a global provider of online real estate marketplaces, information, and analytics, indicates that U.
S. office leasing has exceeded pre-pandemic levels. Office tenants signed new leases for an estimated 120 million square feet during Q1 2026, marking the highest quarterly total since mid-2018. This represents a 25% increase year over year and the first time this decade that quarterly volume surpassed its average from 2015-2019.
Phil Mobley, national director of office analytics at CoStar Group, commented on the findings. “While the quarterly figure signifies continued momentum for national office recovery, the composition of leasing activity reflects an intensification of patterns that have emerged in the leasing office market since the pandemic began,” Mobley stated. He added, “First-quarter volume was driven by an exceptionally large number of transactions rather than a resurgence of large deals. In fact, the number of lease transactions executed during the quarter was the highest observed in a decade.”
At the market level, nearly half of the 20 largest office markets in the U.
S. have seen leasing volumes rebound to within 10% of their respective pre-pandemic averages over the last 12 months. Charlotte and New York City are highlighted as leaders in this recovery. Their performance is attributed to steady demand from banks and other financial institutions, which have maintained higher in-office attendance and relatively stable headcounts. New York City’s recovery has also been supported by continued leasing from technology firms, particularly those tied to artificial intelligence, diversifying the sector’s demand base.
CoStar Group, founded in 1986 and headquartered in Arlington, Virginia, is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. The company’s major brands include CoStar, LoopNet, Apartments.com, Homes.com, Domain, Matterport, STR, Ten-X, and OnTheMarket.
