[[{“value”:”
**Near-Term U.S. Office Leasing Outlook Turns Positive, Says CoStar**
The U.S. office market has received a modest near-term boost, according to a revised forecast from CoStar Group. Over the next four quarters, the sector is expected to see 10 million square feet of positive absorption, a notable upgrade from the previous estimate, which projected a loss of four million square feet.
Phil Mobley, National Director of Office Analytics at CoStar Group, attributed the upgraded forecast to increased leasing activity despite stagnant employment growth in traditional knowledge-based industries.
“The revised forecast accounts for the strongest quarter of occupancy gains since 2019, despite stagnant job growth in traditional knowledge industries,” said Mobley. “Many occupiers, anticipating higher office attendance, have recently committed to additional space despite tepid hiring. This behavior is expected to boost absorption for several more quarters.”
In addition to improved leasing activity, rent growth expectations have also shifted upward. CoStar now projects rent growth to reach 1% by late 2026 and 1.5% by mid-2027. The previous outlook had anticipated sub-1% rent growth well into 2027.
Despite these optimistic short-term projections, the long-term outlook still indicates a trend toward reduced space per employee compared to pre-pandemic norms. Nonetheless, the current momentum suggests a stabilizing office market driven by evolving workplace strategies and anticipatory leasing behavior.
“}]]
