U.S. Office Space Faces Premium Shortage | Embracing Performance Over Perception

The U.S. office sector is experiencing a notable shift—Q3 marked the fifth consecutive quarter of positive net absorption, with occupiers taking on an additional 6 million square feet and the average size of signed leases jumping by about 13%. Yet, only 3.5 million square feet of new office product was delivered, while a substantial 9.6 million square feet exited the inventory through conversions or redevelopment. With just 23 million square feet under construction nationwide, premium office space is quickly becoming a rare commodity. This scarcity is prompting a flight toward top-tier assets, which is already beginning to move effective rents upward. For those navigating ownership or considering investments, understanding this tightening market is crucial—especially as the value proposition for well-positioned assets grows. My focus remains on providing transparent, step-by-step guidance so that both new and experienced property owners can make informed decisions that align with their long-term goals.