Third quarter office leasing was the strongest it has been since before the pandemic as renewed optimism driven by improved return-to-office metrics has bolstered demand, especially for higher quality spaces. Continued RTO rates and solid overall economic growth point to a market that is on track for recovery.

This is according to Savills Research & Data Services’ Q3 state of the office market report, which found a higher proportion of leasing activity in suburban markets post-pandemic. The proportion of renewals relative to total leasing activity has increased as well, said the report.

Overall availability remains elevated as occupiers become more efficient with space utilization. Central business districts have availability of about 25.9%, up 1,210 basis points from pre-pandemic levels, indicating that dense urban centers remain heavily impacted. Suburban availability stands at 25.3%, up 620 basis points from before the pandemic. Tech-centric office markets are experiencing the largest increases in availability, led by San Francisco, Seattle and Austin.