Office leasing grows to 43 million sq feet, highest in the first half of a calendar year: Cushman & Wakefield
Why this matters
The reported surge in office leasing to 43 million square feet in the first half of the year marks a notable inflection point in the US commercial real estate cycle. After a prolonged period of tenant caution and elevated vacancy driven by remote work trends and economic uncertainty, this uptick suggests a tentative re-engagement with physical office space. For institutional investors and capital allocators, the data signals a potential stabilization or even early recovery in office fundamentals, which have been under pressure amid widespread downsizing and sublease overhang. From a capital markets perspective, increased leasing activity could ease concerns around income volatility and asset liquidity that have weighed on office valuations. Lenders, in turn, may view this as a modest improvement in underwriting risk, potentially supporting more constructive financing terms or renewed appetite for office loans. However, the durability of this trend remains uncertain given ongoing macroeconomic headwinds and evolving workplace strategies. In sum, the leasing rebound is a barometer of shifting market sentiment and may presage a recalibration of capital flows back into office assets, albeit with caution. Allocators will be watching closely to see if this momentum translates into sustained demand and improved cash flow visibility.
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On the RET wire
- Disclosed office deal value tracked in July 2026: $22.3B across 73 reported transactions. All Office coverage →
- 56 stories mentioning Cushman on the wire in the past 90 days. Cushman coverage →
Computed from Real Estate Trail’s own tracked coverage
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