{"id":32843,"date":"2025-10-20T10:07:20","date_gmt":"2025-10-20T17:07:20","guid":{"rendered":"https:\/\/essential.construction\/news\/us-office-markets-enter-growth-cycle-as-vacancy-rates-decline-jll\/"},"modified":"2025-10-20T10:07:20","modified_gmt":"2025-10-20T17:07:20","slug":"us-office-markets-enter-growth-cycle-as-vacancy-rates-decline-jll","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/us-office-markets-enter-growth-cycle-as-vacancy-rates-decline-jll\/","title":{"rendered":"US office markets enter growth cycle as vacancy rates decline: JLL"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1760969993\/news\/text_to_speech\/office-market-growth-cycle-construction-minimal_vurtcm.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>The U.S. office market is bouncing back, entering a growth cycle after years of fighting vacancies, according to JLL\u2019s <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.jll.com\/en-us\/insights\/market-dynamics\/us-office\" target=\"_blank\"><span><span><span><span><span><span><span><span>Q3 office market dynamics report<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>National office vacancy rates declined for the first time since early 2019, falling five basis points to 22.5% at the end of the third quarter, JLL says. Leasing activity is at 82% of pre-pandemic levels.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Gross leasing volume grew 6.5% quarter over quarter to 52.4 million square feet, with 18 markets exceeding pre-pandemic leasing activity and seven markets returning to more than 90% of pre-pandemic levels.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The first decline in vacancies since 2019 is the result of stabilizing demand and expanding office footprints at a time when new development is minimal. \u201cOffice [markets] could be entering an extended period of declining vacancy rates,\u201d JLL says.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Footprint adjustments for large expiring leases show the completion of a pandemic-driven downsizing cycle, JLL says. Tenants with at least 25,000 square feet facing expiration have only cut 2.2% of their footprint when signing a new lease in the past year, the firm says.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Large-scale transaction activity has returned to the market, JLL says. Leasing transactions over 100,000 square feet fell over 40% in Q2, but large leases grew by more than 50% in Q3, signalling a move toward recovery.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cDiminished volumes of large leases continue to be one of the most significant drivers of the gap between leasing over the past year and pre-pandemic norms,\u201d says JLL, noting that large leases over the past year only reflect about two-thirds of pre-pandemic volume.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Asking rents grew slightly in Q3 but have remained largely stagnant since mid-2023. Overall asking rents have softened due to declining availability of higher-quality spaces and relatively static availability of in lower-quality segments.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But as Tier 1 and trophy stock becomes more scarce \u2014 with new supply declining in availability and second-generation (2010-2014 construction) tightening since early 2024 \u2014 lower, Tier 2 rental rates are continuing to bubble up, growing 2.1% in the past year, JLL says.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Appetite for office space, even older construction, coincides with post-pandemic highs in office attendance as flexible policies <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.facilitiesdive.com\/news\/return-to-office-orders-drive-attendance-bump-but-hybrid-work-tools-remain\/753342\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>continue to fade<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in favor of more stringent attendance policies, JLL says. Continued shifts have brought the majority of office-based employees from Fortune 100 companies back to the office on a full-time basis, with 56% of these companies facing five-day requirements as of October, the report says.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/office-market-growth-cycle-construction-minimal\/803221\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. The &#8230; <a title=\"US office markets enter growth cycle as vacancy rates decline: JLL\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/us-office-markets-enter-growth-cycle-as-vacancy-rates-decline-jll\/\" aria-label=\"Read more about US office markets enter growth cycle as vacancy rates decline: JLL\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-32843","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=32843"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/32843\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=32843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=32843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=32843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}