Office-using employment in the US grew 6.1% from pre-pandemic levels during the second quarter, reaching a new post-2000 high. While the rate of growth has moderated in 2023 and 2024, this represents a quicker recovery than the sector experienced following the Great Financial Crisis.

This performance has been supported by a stable employment market, but rising unemployment in the future could weaken office demand, according to Compstak's Q2 office market overview.

The average lease term for renewing and extending tenants surpassed the 2018-2019 average during the second quarter for the first time since early 2020, reaching 94.1 months. This growth was largely driven by law firms and government tenants, according to the report. The average lease length for new leases and expansions remains at 122 months, just below pre-pandemic levels. Concession rates remain elevated in gateway markets, the report said.