Office leasing activity across the United States showed renewed strength in the first quarter of 2026, signaling continued momentum in the sector’s recovery.
Tenants signed new leases totaling approximately 120 million square feet during the quarter. This marks the highest quarterly volume since before the pandemic. In addition, the total reflects a 25% increase compared to the same period in 2025.
Notably, this is the first time this decade that quarterly leasing volume has exceeded the average recorded between 2015 and 2019. It also represents the strongest performance since mid-2018. Therefore, the data points to meaningful progress in what has been an uneven recovery.
However, the composition of leasing activity tells a more nuanced story. Growth has not been driven by large, headline-making deals. Instead, a surge in smaller transactions has fueled the increase in overall volume.
In fact, the number of office lease transactions reached its highest level in a decade. This trend highlights a shift in tenant behavior, as more companies commit to space but at reduced footprints.
At the same time, average deal sizes remain below historical norms. Since early 2023, new office leases have averaged roughly 15% smaller than pre-pandemic levels. That pattern has continued into 2026.
Additionally, the reported figures reflect only new lease commitments. Renewal activity, which typically has a limited impact on net occupancy, has been excluded from the data.
Overall, the office market continues to evolve. While leasing volume is rebounding, tenants are prioritizing flexibility and efficiency. As a result, smaller deals are playing a larger role in shaping the next phase of the office sector.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
