{"id":50262,"date":"2026-07-20T10:57:12","date_gmt":"2026-07-20T07:57:12","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=50262"},"modified":"2026-07-20T15:03:33","modified_gmt":"2026-07-20T12:03:33","slug":"national-office-report","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","title":{"rendered":"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels"},"content":{"rendered":"<p><span style=\"color: #0bbfeb;\"><strong>Key Takeaways:<\/strong><\/span><\/p>\n<ul>\n<li>In June, the\u00a0<strong>national office\u00a0vacancy rate<em>\u00a0<\/em>was 17.7%<\/strong>\u00a0following a decrease of 170 basis points (bps) year-over-year (Y-o-Y).<\/li>\n<li>The\u00a0<strong>national office\u00a0listing rate\u00a0averaged $33.67 per square foot<\/strong>\u00a0last month,\u00a0which was 2.4% lower than values recorded in June 2025.<\/li>\n<li>Nationally, the modest office supply pipeline inched up to\u00a0<strong>nearly 29.6 million square feet of office space under construction <\/strong>last month.<\/li>\n<li>With more than $4.3 billion in deals closed since the start of the year,\u00a0<strong>Manhattan, N.Y., topped the list for sales<\/strong>. It was followed by Dallas ($2.6 billion) and San Francisco ($2.4 billion).<\/li>\n<li>Among the eight large U.S. office markets where vacancy was below the national average, <strong>Manhattan, N.Y., and Miami averaged the lowest vacancy rates<\/strong>\u00a0in June.<\/li>\n<li><strong>Western and Northeastern U.S. markets had most of the leasing rates that were above the national average<\/strong>, while Southern and Midwestern markets had some of the most affordable office asking rates<strong>\u00a0<\/strong>in June.<\/li>\n<li><strong>Boston; Manhattan, N.Y.; and Dallas had the most active construction pipelines\u00a0<\/strong>and were still the only markets where more than 2 million square feet of new office space was in development last month.<\/li>\n<\/ul>\n<h3><span style=\"color: #0bbfeb;\">Trends &amp; Industry News<\/span><\/h3>\n<h2>Rise in Adaptive-Reuse Conversions From Office Space to Multifamily<\/h2>\n<p>With office values remaining at a historical low, developers see opportunity in conversions previously considered too risky. As such, the financial challenges typical of office-to-multifamily conversions are more approachable.<\/p>\n<p>Per Yardi Matrix research, nearly half of all office property transactions with two or more sales prices for comparison were discounts since 2024. This equates to increasingly available projects for developers who are willing to go for bargains that offset the costs associated with converting a building\u2019s use. Accordingly, in 2025, 11.8 million square feet of office-to-multifamily were completed or under construction \u2014 higher than in any prior year.<\/p>\n<blockquote><p><span data-olk-copy-source=\"MessageBody\">\u201cRecognizing that office conversions can still be an expensive undertaking and difficult to pull off, the fact that a segment of buildings are trading at such a discount creates the opportunity for more conversions to pencil out. At the very least, this allows for creative solutions to be introduced on what to do with this oversupply.\u201d<\/span><\/p>\n<p><strong>Peter Kolaczynski, Director, Yardi Research<\/strong><\/p><\/blockquote>\n<p>Looking at an individual market level, data showed that nearly 60% of sales closed in Chicago since 2024 were discounted. And, with 95 million square feet considered suitable for property use conversion, the more accessible prices have supported an increase in office-to-multifamily projects. This growth in adaptive reuse has also contributed to keeping Chicago\u2019s office vacancy rate down at 17.8% last month.<\/p>\n<p>However, this is not the story in all major markets. For instance, Seattle has one of the highest vacancy rates in the nation (24.7% in June). Yet, while 47.5 million square feet of office space is suitable for conversion, Seattle has seen very little adaptive-reuse activity compared to cities such as Chicago.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Listing Rates &amp; Vacancy<\/span><\/h3>\n<h2>Vacancy Holding Steady in Portland, Ore<\/h2>\n<p>The national average full-service equivalent listing rate for office space was $33.67 per square foot last month after a dip of 2.4% Y-o-Y. Similarly, the national vacancy rate dropped 170 bps compared to the previous year to rest at 17.7% at the close of June. Notably, of the 25 largest markets that we analyzed, 18 saw decreases in their respective vacancy rates as compared to June of last year.<\/p>\n<p>At the higher end of the spectrum, some of the top markets we surveyed continue to struggle with office vacancy holding above 20%. One of these markets is Portland, Ore., where office vacancy averaged 22.1% in June. Since rising above 20% in 2024, rates here have idled among the highest in the country.<\/p>\n<p>One contributing factor to this stagnation has been major corporate relocations out of the city. Perhaps most significantly, U.S. Bank let its <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/or\/portland\/\" target=\"_blank\" rel=\"noopener\">downtown Portland office lease<\/a> at the U.S. Bancorp Tower expire in 2024. Spanning several floors and encompassing more than 222,000 square feet, this vacancy contributed to a significant rise in the metro\u2019s rate. The building sold last year at an 88% discount from its previous sale in 2015.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-CxwDb\" style=\"min-height: 835px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/CxwDb\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-CxwDb\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/CxwDb\/full.png\" alt=\"Top Listings by Metro Area: June 2026 (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Transactions<\/span><\/h3>\n<h2>Phoenix Sees Bump in Sale Price Per Square Foot<\/h2>\n<p>In June, year-to-date office sales added up to more than $30 billion across 1,296 transactions, while sale prices averaged $195 per square foot. Additionally, nearly halfway through the year, a total of 18 of the top 25 metros analyzed for this report saw overall sales in excess of $500 million during the first six months of 2026.<\/p>\n<p>Phoenix is among the office markets to see an upward trend in terms of sale prices. According to Yardi Matrix research, prices here increased for the last two years to reach $184 per square foot in June 2026. In particular, since 2020, medical office values have fared much better here than in other markets.<\/p>\n<p>To that end, last month, Fidelity Investments acquired the 91,805-square-foot medical office building at 3530 S. Val Vista Drive in Gilbert, Ariz., for $51.5 million \u2014 a 56% premium to the $33 million price that RX Health &amp; Science Trust paid for the property in 2021.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-GwTtc\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/GwTtc\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-GwTtc\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/GwTtc\/full.png\" alt=\"2026 Year-To-Date Sales (Millions) (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Supply<\/span><\/h3>\n<h2>Dallas Maintains One of the Largest Pipelines in the Country<\/h2>\n<p>As of June, nearly 29.6 million square feet of office space was under construction in the U.S. markets we tracked for this report. According to Yardi research data, this represented roughly 0.4% of stock. Also as of June, developers have delivered 11.1 million square feet of office space.<\/p>\n<p>Specifically, three of the 25 markets we analyzed had more than 2 million square feet (each) in development last month \u2014 Manhattan, N.Y.; Boston; and Dallas.<\/p>\n<p>Throughout the last 12 months, developers in Dallas have started around 1 million square feet of office construction. By June, the pipeline here totaled 2.9 million square feet (1% of stock). Although this marked an 11% Y-o-Y decrease in construction, there\u2019s reason to be optimistic about activity picking up in the future.<\/p>\n<p>That\u2019s because, relative to other metros, Dallas has solid office employment growth, which was at 0.6% in May. And, because Dallas has been growing as a regional financial hub, the positive employment trend has been led by the professional and business sector, as well as the financial services sector, in recent years. Moreover, current demand from businesses relocating to or expanding in Dallas signals support for additional projects as the metro continues to grow.<\/p>\n<p>One example is Goldman Sachs, which plans to expand its local presence with the construction of its new, 800,000-square-foot campus at 2323 N. Field St. \u2014 a project that has already broken ground and is expected to deliver sometime in 2028.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-e63E7\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/e63E7\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-e63E7\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/e63E7\/full.png\" alt=\"Office Space Under Construction (Million Sq. Ft.) (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Western Markets<\/span><\/h3>\n<h2>San Francisco Tops Rents, YTD Sales, Price per Square Foot &amp; Vacancy<\/h2>\n<p>Vacancy rates were above the national average of 17.7% in June in the majority of the Western U.S. markets that we surveyed for this report. As a matter of fact, with the exception of Los Angeles (14.4% vacancy) and Phoenix (16.5%), all markets in this group averaged vacancy rates at or higher than 19% last month.<\/p>\n<p>More precisely,\u00a0vacancy for <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ca\/san-francisco\/\" target=\"_blank\" rel=\"noopener\">office space in San Francisco<\/a> was the highest in the region, averaging nearly 26% in June. Next, Seattle was second with vacancy averaging 24.7% last month.<\/p>\n<p>San Francisco also topped the regional list for leases: Asking rates here averaged a little more than $65 per square foot in June, which was almost double the national average of $33.67.<\/p>\n<p>Nearby, Bay Area office space remained the second-priciest in the region last month with asking rates averaging $56.25 per square foot \u2014 the only other Western U.S. market on our list where average rates surpassed $50 per square foot last month.<\/p>\n<p>Not far behind, the Los Angeles market (#3) and <a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ca\/san-diego\/\" target=\"_blank\" rel=\"noopener\">office space in San Diego<\/a> (#4) each averaged more than $40 per square foot \u2014 the only other markets in the region to do so \u2014 and closed out the standout block of California markets occupying the top four spots on the list for rents.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-ob5hL\" style=\"min-height: 600px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/ob5hL\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-ob5hL\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/ob5hL\/full.png\" alt=\"West Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Otherwise, Portland, Ore.; Phoenix; and Denver were the only large markets in the Western U.S. where office asking rates were below the national average in June. Each averaged around or less than $30 per square foot.<\/p>\n<p>Meanwhile, when looking at office sales in the region, data showed that northern California markets held a comfortable lead. Here again, San Francisco \u2014 which saw nearly $2.4 billion in sales close during the first six months of the year \u2014 took the top spot, followed by the neighboring Bay Area, where year-to-date transactions surpassed $2 billion. At the close of June, they were the only two Western U.S. office markets where sales had reached above that mark.<\/p>\n<p>Further south, Los Angeles commanded the third-highest sales total in the region so far this year ($1.2 billion). It was followed by sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/az\/phoenix\/\" target=\"_blank\" rel=\"noopener\">Phoenix office space<\/a>, which added up to $711 million since the start of the year through June. Denver and Seattle were the only other Western U.S. markets to see office sales surpass $500 million during the first six months of the year.<\/p>\n<p>Of course, high-profile assets\u00a0in gateway markets continue to command top-tier prices.\u00a0Namely, San Francisco\u00a0office sales closed through June averaged $610 per square foot, which was the highest nationwide thus far.<\/p>\n<p>California markets also led the region in terms of development in June:\u00a0San Diego had a little more than 1.7 million square feet under construction, followed by\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ca\/los-angeles\/\" target=\"_blank\" rel=\"noopener\">Los Angeles office space<\/a>\u00a0under development (1.43 million square feet). Together, they accounted for more than 57% of the nearly 5.5 million square feet currently in development across the largest markets in the region.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Midwestern Markets<\/span><\/h3>\n<h2>Chicago Office Sales Surpass $1 Billion, Vacancy Nears National Average<\/h2>\n<p>The top Midwestern U.S. office markets we looked at for this report remained some of the most affordable in the country in June, in terms of both average listing rate and for-sale price per square foot.<\/p>\n<p>In this region, asking rents for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/mi\/detroit\/\" target=\"_blank\" rel=\"noopener\">Detroit office space<\/a>\u00a0were the most accessible with rates here averaging $21.47 per square foot. Next,\u00a0the average asking rate for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/mn\/minneapolis\/\" target=\"_blank\" rel=\"noopener\">office space in Minneapolis<\/a>; St. Paul, Minn.; and the wider Twin Cities metro submarkets rested at $27.63 per square foot. At the same time, occupancy levels in the Minnesota market last month also kept vacancy at 17.8% to make it one of the closest in the region to the national average of 17.7% last month.<\/p>\n<p>Unsurprisingly,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/il\/chicago\/\" target=\"_blank\" rel=\"noopener\">Chicago office space<\/a>\u00a0was the region\u2019s priciest for leasing in June with asking rents averaging $28.39 per square foot. Additionally, the Windy City\u2019s occupancy levels averaged an 17.8% vacancy rate \u2014 on par with the Twin Cities market and also near the national average.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-ToLu7\" style=\"min-height: 520px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/ToLu7\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-ToLu7\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/ToLu7\/full.png\" alt=\"Midwest Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Likewise, the highest regional office sales total so far this year was also in Chicago: By the start of July, the largest office market in the Midwest had seen $1.18 billion worth of office space change hands since the beginning of the year. Then, at quite a distance, office sales in Minnesota\u2019s Twin Cities followed in second place with a total of $506 million through June 2026.<\/p>\n<p>Other than those, development in the region remained quite slow last month with a combined total of a little more than 1.3 million square feet of office space under construction in June across the Midwestern U.S. markets we analyzed.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Southern Markets<\/span><\/h3>\n<h2>Texas Markets Dominate Construction Pipeline, Miami Tops Asking Rates<\/h2>\n<p>In the South, Miami; Austin, Texas; and Washington, D.C. remained the region\u2019s top three markets for asking rents and were the only Southern U.S. markets to see full-service equivalent listing rates averaging more than $40 per square foot in June.<\/p>\n<p>At the opposite end of the ranking,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/fl\/orlando\/\" target=\"_blank\" rel=\"noopener\">office space in Orlando, Fla.<\/a>, had the lowest asking rent average in the region. It was also the only market in this group to average less than $30 per square foot last month.<\/p>\n<p>In this case, a look at year-to-date office sales showed that seven of the 10 Southern U.S. markets we analyzed for this report recorded totals higher than $500 million through last month. Most notably, three of them saw year-to-date sales surpass the $1 billion mark: Dallas had the highest year-to-date sales total as office transactions here amounted to more than $2.6 billion last month. Next, sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/dc\/washington\/\" target=\"_blank\" rel=\"noopener\">Washington, D.C. office space<\/a>\u00a0added up to roughly $1.5 billion through June, followed by Houston ($1 billion).<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-Od7s7\" style=\"min-height: 680px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/Od7s7\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-Od7s7\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/Od7s7\/full.png\" alt=\"South Regional Highlights (Table)\" \/><\/noscript><\/div>\n<p>&nbsp;<\/p>\n<p>Then, looking at leasing data,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/fl\/miami\/\" target=\"_blank\" rel=\"noopener\">office space in Miami<\/a>\u00a0had the highest average full-service equivalent listing rate in the region in June at $61.04 per square foot. Not to be outdone,\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/tx\/austin\/\" target=\"_blank\" rel=\"noopener\">office space in Austin, Texas,<\/a>\u00a0asked an average of nearly $47 per square foot, followed by Washington, D.C. \u2014 the only other market in this regional group to see lease rates average more than $40 per square foot last month.<\/p>\n<p>One other market in the region also rested above the national average last month: Asking leasing rates for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ga\/atlanta\/\" target=\"_blank\" rel=\"noopener\">office space in Atlanta<\/a>\u00a0averaged nearly $37 per square foot.<\/p>\n<p>It\u2019s worth noting here that Texas\u2019 Austin and Houston had the highest vacancy rates in the region in June 2026 and were also the only ones to exceed 20% in this respect. Conversely, Miami and Tampa, Fla., had the highest rates of occupancy and were among the three Southern U.S. markets with vacancy below the national average last month. The third was Orlando, Fla.<\/p>\n<p>As for construction, data showed that Texas markets carried a significant portion of the office pipeline in the region. In June, nearly 2.9 million square feet of office space was in development in Dallas and 1.27 million square feet was under construction in Austin \u2014 the only markets in the region to each claim more than 1 million square feet in development last month. Combined, they account for nearly half of the regional pipeline.<\/p>\n<p>Together with the 800,000 square feet under construction in Houston, Texas markets accounted for nearly 17% of the national pipeline.<\/p>\n<h3><span style=\"color: #0bbfeb;\">Northeastern Markets<\/span><\/h3>\n<h2>YTD Office Sales Surpass $4 Billion in Manhattan, N.Y., as Boston Continues to Lead Construction<\/h2>\n<p>In June, Manhattan, N.Y., had the highest average listing rate in the region at $72 per square foot. For comparison, asking rents for\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/pa\/philadelphia\/\" target=\"_blank\" rel=\"noopener\">Philadelphia office space<\/a>\u00a0averaged $31.80 per square foot, making it the only Northeastern U.S. office market to ask less than the national average of $33.67 per square foot last month.<\/p>\n<p>Looking at construction, two of the four largest office markets in the Northeast had more than 2 million square feet of new office space in development (each). Together, they accounted for more than 20% of the national pipeline last month.<\/p>\n<p>Boston led supply in the region as office projects in development here totaled more than 3.4 million square feet. Then, the\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/ny\/manhattan\/\" target=\"_blank\" rel=\"noopener\">Manhattan, N.Y., office space<\/a>\u00a0pipeline was the second-largest in the region last month with 2.9 million square feet under construction. With that, these two Northeastern U.S. markets accounted for about 21% of the country\u2019s total pipeline of approximately 29.55 million square feet last month.<\/p>\n<p>As one might expect, analysis of office sales showed that transactions in Manhattan, N.Y., amounted to the largest sales total since the start of the year in both the region and the country at nearly $4.3 billion. Meanwhile, transaction activity in Boston during the first six months of the year totaled $618 million in year-to-date office sales. Next, sales of\u00a0<a href=\"https:\/\/www.commercialcafe.com\/office\/us\/nj\/\" target=\"_blank\" rel=\"noopener\">New Jersey office space<\/a>\u00a0added up to $533 million since the start of the year through June.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-WWfVp\" style=\"min-height: 540px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/WWfVp\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-WWfVp\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/WWfVp\/full.png\" alt=\"Northeast Regional Highlights (Table)\" \/><\/noscript><\/div>\n<h3><span style=\"color: #0bbfeb;\">Office-Using Employment<\/span><\/h3>\n<h2>Effect of Job Losses in Tech Reaches Washington, D.C.<\/h2>\n<p>According to data from the Bureau of Labor Statistics, office-using sectors of the labor market experienced a combined gain of 27,000 jobs in June, led by the professional and business services sector. At the same time, the information sector lost 9,000 jobs, while employment in the financial activities sector stayed flat.<\/p>\n<p>On an annual basis, national employment in office-using sectors decreased by 101,000 positions (a 0.3% Y-o-Y drop), even as total non-farm employment across the country grew by 0.3% during the same timeframe.<\/p>\n<p>At the metropolitan level, Washington, D.C. leads the nation\u2019s major markets in office employment decline. As of May, employment in D.C. decreased 3.6% Y-o-Y \u2014 a contraction surpassed by only Portland, Ore. Office employment in the nation\u2019s capital is feeling the combined effect of federal job cuts and increased implementation of simulated reasoning technologies. In particular, employment in the metro\u2019s information sector declined 4.6% Y-o-Y. It was followed by professional and business services (-3.9%) and the financial sector (-1.3%).<\/p>\n<p>&nbsp;<\/p>\n<div id=\"datawrapper-vis-fU65E\" style=\"min-height: 620px;\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/fU65E\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-fU65E\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/fU65E\/full.png\" alt=\"Office Using Employment: June 2026 (Table)\" \/><\/noscript><\/div>\n<h4><span style=\"color: #0bbfeb;\">Methodology<\/span><\/h4>\n<p>This report covers office buildings that are 25,000 square feet or larger.\u00a0Listing rate and occupancy information was based on Yardi Research data.<\/p>\n<p><strong>Listing rates<\/strong>\u00a0are full-service rates or \u201cfull-service equivalent\u201d for spaces that were available as of the report period.<\/p>\n<p><strong>Vacancy<\/strong>\u00a0refers to the total square feet vacant in a market (including subleases) divided by the total square feet of office space in that market. Owner-occupied buildings are not included in vacancy calculations. For reporting purposes, A and A+\/trophy buildings were combined.<\/p>\n<p><strong>Stages of the supply pipeline:<\/strong><\/p>\n<p><strong>Planned\u00a0<\/strong>\u2014 Buildings that are currently in the process of acquiring zoning approval and permits, but have not yet begun construction.<\/p>\n<p><strong>Under Construction<\/strong>\u00a0\u2014 Buildings for which construction and excavation have begun.<\/p>\n<p><strong>Office-Using Employment<\/strong>\u00a0is defined by the Bureau of Labor Statistics as including the sectors information, financial activities, and professional and business services. Employment numbers are representative of the metropolitan statistical area and do not necessarily align exactly with CommercialCafe market boundaries.<\/p>\n<p><strong>Sales volume<\/strong>\u00a0and\u00a0<strong>price-per-square-foot<\/strong>\u00a0calculations for portfolio transactions or those with unpublished dollar values were estimated using sales comps based on sales that were similar in terms of the market and submarket; use type; location and asset ratings; sale date; and property size.<\/p>\n<p>Market boundaries in the CommercialCafe office report coincide with markets defined in the\u00a0<a href=\"https:\/\/www.commercialcafe.com\/commercial-markets\/\">CommercialCafe Markets Map<\/a>\u00a0and may differ from regional boundaries defined by other sources.<\/p>\n<h4><span style=\"color: #0bbfeb;\">Fair Use &amp; Redistribution<\/span><\/h4>\n<p>We encourage and freely grant you permission to reuse, host, or repost the research, graphics and images presented in this article. When doing so, we kindly ask that you credit our research by linking to CommercialCafe.com or this page so that your readers can learn more about this project, the research behind it and its methodology. For more in-depth, customized data, please contact us at\u00a0<a href=\"mailto:prinfo@commercialcafe.com\">prinfo@commercialcafe.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In 2025, office-to-multifamily projects that were either completed or under construction reached 11.8 million square feet \u2014 higher than in any prior year. While office conversions can still be an expensive undertaking and difficult to pull off, office buildings trading at such a discount as recent years creates the opportunity for more approachable conversions.<\/p>\n","protected":false},"author":48,"featured_media":51017,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"Central Business Districts Feel the Brunt of Rising Office Distress","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[42,4014,39],"tags":[],"class_list":["post-50262","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-reports","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>U.S. Office Market Report July 2026 | CommercialCafe<\/title>\n<meta name=\"description\" content=\"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels\" \/>\n<meta property=\"og:description\" content=\"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/\" \/>\n<meta property=\"og:site_name\" content=\"CommercialCafe\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-20T07:57:12+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-20T12:03:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"900\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ioana Ginsac\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ioana Ginsac\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"14 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/\"},\"author\":{\"name\":\"Ioana Ginsac\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/#\\\/schema\\\/person\\\/48aeaad10a9efc4d927324fcb20632f2\"},\"headline\":\"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels\",\"datePublished\":\"2026-07-20T07:57:12+00:00\",\"dateModified\":\"2026-07-20T12:03:33+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/\"},\"wordCount\":2955,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/06\\\/office-report-July-2026.jpg\",\"articleSection\":[\"Commercial Real Estate Reports\",\"Featured\",\"Office\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/\",\"url\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/\",\"name\":\"U.S. Office Market Report July 2026 | CommercialCafe\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/06\\\/office-report-July-2026.jpg\",\"datePublished\":\"2026-07-20T07:57:12+00:00\",\"dateModified\":\"2026-07-20T12:03:33+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/#\\\/schema\\\/person\\\/48aeaad10a9efc4d927324fcb20632f2\"},\"description\":\"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/06\\\/office-report-July-2026.jpg\",\"contentUrl\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/06\\\/office-report-July-2026.jpg\",\"width\":1600,\"height\":900},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/national-office-report\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/\",\"name\":\"CommercialCafe\",\"description\":\"Your Commercial Real Estate Blog\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/#\\\/schema\\\/person\\\/48aeaad10a9efc4d927324fcb20632f2\",\"name\":\"Ioana Ginsac\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/04\\\/Ioana-Ginsac.png?w=96\",\"url\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/04\\\/Ioana-Ginsac.png?w=96\",\"contentUrl\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/wp-content\\\/uploads\\\/sites\\\/10\\\/2026\\\/04\\\/Ioana-Ginsac.png?w=96\",\"caption\":\"Ioana Ginsac\"},\"description\":\"Ioana is a content writer who has been covering all-things-CRE (and more) for several Yardi network publications since 2017. You will find her byline regularly in industry news and market reports, but also on articles covering sustainable development, green urbanism, and innovation, all of which she has been passionately learning about for more than a decade. Her work has been referenced by publications including AmericanInno, Bisnow, BusinessInsider, Commercial Property Executive, Curbed, Fast Company, Forbes, GlobeSt.\",\"jobTitle\":\"Senior Content Writer, Industry News & Reports\",\"url\":\"https:\\\/\\\/www.commercialcafe.com\\\/blog\\\/author\\\/ioana-ginsac\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"U.S. Office Market Report July 2026 | CommercialCafe","description":"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","og_locale":"en_US","og_type":"article","og_title":"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels","og_description":"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.","og_url":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","og_site_name":"CommercialCafe","article_published_time":"2026-07-20T07:57:12+00:00","article_modified_time":"2026-07-20T12:03:33+00:00","og_image":[{"width":1600,"height":900,"url":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","type":"image\/jpeg"}],"author":"Ioana Ginsac","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Ioana Ginsac","Est. reading time":"14 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#article","isPartOf":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/"},"author":{"name":"Ioana Ginsac","@id":"https:\/\/www.commercialcafe.com\/blog\/#\/schema\/person\/48aeaad10a9efc4d927324fcb20632f2"},"headline":"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels","datePublished":"2026-07-20T07:57:12+00:00","dateModified":"2026-07-20T12:03:33+00:00","mainEntityOfPage":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/"},"wordCount":2955,"image":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","articleSection":["Commercial Real Estate Reports","Featured","Office"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","url":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/","name":"U.S. Office Market Report July 2026 | CommercialCafe","isPartOf":{"@id":"https:\/\/www.commercialcafe.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","datePublished":"2026-07-20T07:57:12+00:00","dateModified":"2026-07-20T12:03:33+00:00","author":{"@id":"https:\/\/www.commercialcafe.com\/blog\/#\/schema\/person\/48aeaad10a9efc4d927324fcb20632f2"},"description":"Discounted office sales assist the rise in office-to-multifamily conversion projects, which impact stubbornly high office vacancy rates.","breadcrumb":{"@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialcafe.com\/blog\/national-office-report\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#primaryimage","url":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","contentUrl":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","width":1600,"height":900},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialcafe.com\/blog\/national-office-report\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialcafe.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Adaptive-Reuse Conversion Projects on the Rise, Tackling Stubbornly High Office Vacancy Levels"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialcafe.com\/blog\/#website","url":"https:\/\/www.commercialcafe.com\/blog\/","name":"CommercialCafe","description":"Your Commercial Real Estate Blog","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialcafe.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialcafe.com\/blog\/#\/schema\/person\/48aeaad10a9efc4d927324fcb20632f2","name":"Ioana Ginsac","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/04\/Ioana-Ginsac.png?w=96","url":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/04\/Ioana-Ginsac.png?w=96","contentUrl":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/04\/Ioana-Ginsac.png?w=96","caption":"Ioana Ginsac"},"description":"Ioana is a content writer who has been covering all-things-CRE (and more) for several Yardi network publications since 2017. You will find her byline regularly in industry news and market reports, but also on articles covering sustainable development, green urbanism, and innovation, all of which she has been passionately learning about for more than a decade. Her work has been referenced by publications including AmericanInno, Bisnow, BusinessInsider, Commercial Property Executive, Curbed, Fast Company, Forbes, GlobeSt.","jobTitle":"Senior Content Writer, Industry News & Reports","url":"https:\/\/www.commercialcafe.com\/blog\/author\/ioana-ginsac\/"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.commercialcafe.com\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/office-report-July-2026.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/posts\/50262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/comments?post=50262"}],"version-history":[{"count":8,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/posts\/50262\/revisions"}],"predecessor-version":[{"id":51248,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/posts\/50262\/revisions\/51248"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/media\/51017"}],"wp:attachment":[{"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/media?parent=50262"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/categories?post=50262"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialcafe.com\/blog\/wp-json\/wp\/v2\/tags?post=50262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}