Leasing Momentum Improving in Select Markets • Despite ongoing headwinds, signs of stabilization in the office sector are emerging. Full-year 2025 net absorption was positive in most countries across the Americas, led by Canada with gains exceeding 4.5 million square feet (msf). Colombia also performed strongly, with net absorption surpassing 2% of total inventory and vacancy falling below 7%, well within 2019 norms. While the U.S. posted -6.7 msf of net absorption, the weakness was heavily concentrated in a handful of underperforming markets. Excluding the five weakest markets, net absorption for the year would have been 11.1 msf.
Office Demand Disproportionately Favoring Trophy Class A Buildings
Tight Mkts. More Likely to See New Supply Class A overall vacancy rates vs. U/C share of inventory, U.S. & Canada markets
0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8%
Tight Vacancy and Plenty of New Supply
Higher Vacancy and Plenty of New Supply
Montreal
Orlando
Kansas City
Washington
Salt Lake City
Milwaukee
San Diego
Philadelphia
Orange Co.
Hampton Roads
Tampa
Boston Tucson
Tight Vacancy and Less New Supply
Higher Vacancy and Less New Supply
Las Vegas Sacramento
Richmond
Greensboro
Cleveland
Colorado Springs
Baltimore
NYC - Downtown
St. Louis Calgary
Long Island
San Antonio
0%
5%
10%
15%
20% 25% 30% 35%
Class A Vacancy Rate (2025 Q4)
U.S. Average U.S. Markets Canada Average Canadian Markets
Source: Cushman & Wakefield Research
• Leasing activity remains selective rather than broad-based, but momentum is gradually broadening geographically. • Market fundamentals continue to reflect a pronounced bifurcation. Overall vacancy remains elevated, yet availability is disproportionately concentrated in older and lower-quality buildings. • In many major markets, Class A leasing has matched or exceeded pre-pandemic levels, reinforcing the sustained flight to quality. Well-located, amenity-rich assets are capturing an outsized share of tenant demand. • As new deliveries slow and demand concentrates within a limited pool of premium assets, occupiers in stronger submarkets are facing reduced optionality for high-quality space. • Markets with tightening availability of Class A office space are most likely to see an uptick in construction activity. Strong demand, coupled with limited supply, supports rent growth, compresses vacancy rates and incentivizes new development.
Americas Net Abs. Totaled Positive in 2025 2025 net absorption by country
1.7 msf 2.4 msf 2.1 msf 2.1 msf
-0.6 msf 1.3 msf 1.3 msf 2.6 msf
0.2 msf 0.1 msf
1.6 msf 0.9 msf
0.2 msf 1.0 msf
-6.0 msf
-3.1 msf
LATAM (excl. Mexico)
Canada
Mexico
United States
Q1 Q2 Q3 Q4 2025 Total
Source: Cushman & Wakefield Research
18
19
Cushman & Wakefield
Office Fit Out Cost Guide 2026
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