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CoStar Forecasts Steady US Office Vacancy Through 2026

April 29, 2026

2 min read

Key Takeaways

US office vacancy rate expected to remain steady through 2026.
Vacancy rate dropped to 14% in Q1 2026.
Forecast reflects stronger near-term demand outlook.
Rent growth expected to strengthen modestly.

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Strategic Implications

This forecast may indicate a stable commercial real estate market, which could benefit companies like CoStar. The expected slow decline in office vacancy rates suggests a potential shift in the market, which could impact demand and supply. The stronger near-term demand outlook may also signal a pickup in economic growth, which could have broader implications for the industry.

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What Happened

Office Space Demand Expected To Remain Stable This Year

CoStar Group has revised its forecast for US office vacancy rates, expecting them to remain steady through 2026. The vacancy rate dropped to 14% in the first quarter of 2026, and the updated forecast reflects a stronger near-term demand outlook due to recent leasing momentum. According to Phil Mobley, national director of office analytics at CoStar Group, the metric is expected to remain at this level through 2026 before beginning a slow decline. This news was first reported by the Financial Times.

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