Demand for office space has increased over the first half of this year but remains below pre-pandemic levels, according to Savills Research & Data Services' State of the U.S. Office Market Report for the second quarter.

Office utilization continues to face challenges as hybrid work has become the new norm across industries and geographies. Miami and Manhattan lead the country's return-to-office rates, followed by Atlanta and Dallas, the report said.

Many companies have instituted stricter in-office expectations, but slowing employment growth could become a factor during the rest of the year. Growth in office-using sector employment has slowed year-over-year, particularly in business and professional services, financial, manufacturing and information. Despite this, office-using jobs remains higher than before the pandemic, the report said.