news • Jan 08 2026

The Only Constant is Change: Here’s a Look at the Office Market

The state of the office is constantly evolving. In the post-pandemic era, the office market is showing signs of stabilization. However, it’s facing frequent transitions and will continue to do so. At the moment, the greatest emphasis is on a return to office, and companies recognize that if they’re going to successfully convince their employees to be there, they need to make it worthwhile. Simply put, the return to office affects everything.

A continuation of the return to office is how companies are coming to determine exactly what they want out of their office space. A unique change from pre-pandemic demands, we’ll explore how things have evolved below. While the only constant is change, one guarantee is that it will always be interesting.

 

The Return to Office is in Full Force

From the number of employees strolling the city sidewalks daily to the amount of square footage companies are leasing, the return to office affects every facet of commercial real estate. Many major companies, like JP Morgan, are doubling down on mandating a return to the office, which boosts the market. San Francisco saw the biggest percentage jump in office visits in the past 12 months, 21.6%, among the cities that Placer.ai tracks, the San Francisco Chronicle reported. But in some cities, like Boston, return-to-office rates are lagging, down 35.6% compared to the same month in 2019. In others, rates have hit new highs. 

New York City’s office market is enjoying its biggest boom in nearly two decades. Businesses leased 23.2 million square feet of additional Manhattan office space during the first nine months of 2025, according to real-estate services firm CBRE Group. That is the largest amount of new workspace rented for that period in 19 years, the Wall Street Journal reported. The piece explained that this is caused by the financial sector’s increasing appetite for more modern office space. While everything isn’t perfect in the industry (nationwide, office leasing remains about 11% below its pre-pandemic average, according to CBRE), this is tremendous progress, considering where the market was a year ago.  

In Chicago, 2025 brought renewed interest in long-term planning and potential expansion, according to RE Business. They point out that the city’s commercial real estate market is positioned for a gradual but steady recovery. Naturally, vacancy rates are elevated in some areas, particularly when buildings are out of date. But properties that have potential for upgrades, including wellness features, building amenities, and access to public transit, are particularly attractive.

 

Giving Companies What They Want

With the tremendous return to the office, companies realize they need to create the type of office that draws in employees and serves as a strong representation of their strengths for clients. According to the Wall Street Journal, companies are taking more space when they sign new leases. Currently, 40% of tenants in the market are in expansion mode, according to Liz Hart, Newmark’s president of leasing for North America. She said that was true for only 33% of the tenants looking for space in previous quarters. Companies are looking beyond traditional design, working to design for a multigenerational workforce. They’re focused on fostering human connection, designing to build relationships, inspiring belonging, and fostering togetherness. As Gensler accurately points out, human connection is now a real estate metric

It’s not a surprise that employees who enjoy being in the workplace perform better. MIT Sloan Research shows that employees with a high sense of belonging perform 56% better, take 75% fewer sick days, and are half as likely to leave. That’s a likely indicator as to why Divco West recently poured $100 million into One Lincoln in Downtown Boston, where amenities include a game room with darts, a billiards room, sports simulators, and a full-size basketball and pickleball court outside.

And as we look toward 2026, companies will be extremely conscious of what amenities they’re looking at for their office space. Experts predict everything from modular and AI-integrated design to personalized climate zones being particularly popular, as adaptability and technology are essential pieces of the workplace. While the return to office isn’t perfect, it does serve as a barometer of the office real estate industry. By listening to the industry and its demands, developers can create the offices that fit the future that employees need.  

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