Momentum builds as U.S. gateway market office leasing hits multi-year highs

A defining quarter for U.S. office demand

The U.S. office sector hit a defining moment in Q2 2026, with gateway market leasing totaling 42.6 million square feet (msf)—the most active quarter since 2019. Quarterly demand exceeded the average recorded during the three years preceding the pandemic, highlighting that leasing activity has returned to levels that would have represented a strong quarter even before the office market’s pandemic-era disruption. First-half 2026 leasing volume among these markets reached 84.2 msf, delivering the strongest firsthalf performance since 2019. The growing momentum in office demand underscores the resilience of U.S. occupiers, who have continued to make leasing decisions despite macroeconomic uncertainty.


Tech hubs lead the charge

A closer look at individual markets highlights where leasing momentum has accelerated most in recent quarters, with several leading technology hubs driving the gains. Seattle/Puget Sound posted a 53.6% increase in leasing activity over the trailing four quarters compared with the prior four-quarter period, the largest percentage gain of any Tier 1 office market in the country. Silicon Valley (35.3%) and San Francisco (34.6%) were the only other markets to post gains above 30%.

Notably, all three have technology-centric tenant bases and were among the hardest hit during the technology leasing downturn of 2022 and 2023, when many tech companies significantly reduced their office footprints. As investment in artificial intelligence has accelerated and office utilization continues to improve, leasing demand has rebounded across these major technology hubs.

Manhattan and Miami chart their own course

Two other markets stand out in Q2 for leasing demand. Manhattan leasing activity is up 9.0% over the trailing four quarters compared with the prior four-quarter period, with first-half 2026 volume alone hitting 23.2 msf, the strongest first half since 2013. Demand in Manhattan is being driven by law firms and technology, advertising, media and information (TAMI) tenants. Miami leasing activity is up 17.4% from the prior four-quarter period as occupiers continue to gravitate toward premium, lifestyle-oriented workplaces. Manhattan and Miami also posted two of the lowest availability rates of any Tier 1 market this quarter, at 14.3% and 14.9%, respectively, underscoring how tight quality supply has become in both markets.

Looking ahead

The U.S. office market is expected to stabilize through 2026, contingent on continued leasing demand for top-tier space and sustained return-to-office momentum. The resurgence in activity from the technology sector, particularly the AI vertical, is expected to continue to fuel leasing demand in select gateway markets. Legal and financial services should also remain significant contributors to deal activity as both industries maintain a strong preference for in-office work through large leasing commitments. Overall office leasing conditions are expected to remain bifurcated, with tenant demand concentrated in best-in-class assets. As a result, rent growth at the top of the market is likely to remain resilient. A limited construction pipeline is also expected to keep availability tight for premium space and make timing especially important for occupiers with near-term decisions. With new supply constrained and demand for trophy assets remaining strong, tightening conditions at the top of the market may increasingly spill over into demand for well-located, lower-tier assets.