The office sector is poised for continued momentum this year as economic growth and increasing office attendance will continue to drive robust leasing, according to Savills Research & Data Services’ Q4 State of the US Office Market.
In-office mandates are on the rise along with required in-person days as employers prioritize collaboration, innovation and team cohesion, the report said. This has driven strong leasing activity, particularly for high-quality space. Office leasing volume reached a post-pandemic high during the fourth quarter at 56.7 million square feet leased, and this momentum is expected to continue in 2025 as return-to-office continues to gain traction despite economic uncertainty, said Savills.
Office-using employment growth was negative to start 2025, although it remains higher than pre-pandemic levels, the report said. Recent declines in availability across central business districts and suburban markets are a positive sign. Although it remains elevated, availability ended the year on a downward trend at 24.8%, which marked the first significant decrease since the pandemic, Savills said.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
