U.S. Office Demand Is Rising, but Uneven | Embracing Performance Over Perception

The US office market has been improving, but recovery stayed uneven as tenants favored newer, better-located, amenity-rich buildings over older commodity space.
Recovery increasingly split: tenants preferred properties offering newer space, stronger locations, and better amenities, while older commodity offices faced a much tougher leasing path.
A major test still lies ahead: ~42% of pre-pandemic leases had not expired, with ~870M sq-ft set for renewal before end of 2027.
There was a constructive sign for owners: ~80% of companies planned to maintain or expand their footprints when upcoming lease expirations arrived.
The path forward looked clear: quality mattered more, tenants held leverage, and owners of outdated space faced stronger pressure to reinvest or reposition.