U.S. office posts fifth straight quarter of absorption gains, JLL says

The U.S. office market recorded 6 million square feet of positive net absorption in the third quarter, the fifth consecutive quarter of occupancy gains, according to a JLL report cited by IREI. Year-to-date absorption totaled 21 million square feet, with technology-focused markets accounting for many of the strongest gains.

Leasing volume increased 6.4 percent over the past 12 months, led by gateway markets, where activity rose 13 percent, according to the report. In Sun Belt and smaller tertiary markets, leasing activity reached more than 95 percent of 2019 levels.

Only 3.5 million square feet of office space was completed in the quarter, matching the near-record-low delivery volume recorded in the second quarter of 2026. Roughly 9.6 million square feet was removed from inventory. Total office inventory has fallen by more than 45 million square feet from its late-2023 peak, and 23 million square feet remains under construction.

National asking rents rose 0.6 percent quarter over quarter to $40.51 per square foot, supported by improving landlord leverage across class A markets. Effective rents also increased in trophy and newly constructed properties as available space became more limited. The report noted that new macroeconomic pressures could affect the market's recovery.