U.S. Office Market Recovery Expands Beyond Gateway Cities

The U.S. office market recovery is expanding beyond major cities, with the national vacancy rate falling to 20.1%. Leasing demand is at a six-year high, and vacancy rates declined in 49 of 92 markets. Sublease space dropped 15.4% year-over-year, and new office construction is at its lowest since 2012. Office inventory shrank by 0.6%, supporting a gradual market recovery.