U.S. office vacancy is expected to remain steady through 2026 before beginning a gradual decline, according to a revised forecast from CoStar.
National office vacancy continued to retreat in second quarter 2026, dropping slightly below 14 percent and shifting 30 basis points below its mid-2025 record peak. Between July 2025 and June 2026, office suppliers occupied 17 million square feet of net new space, which was only the second sustained period of positive net absorption since 2020.
Net absorption is expected to be 13 million square feet in 2026 and 5 million square feet in 2027, a downgrade from the previous forecast
