Your Daily Commercial Real Estate Briefing

U.S. Office Recovery Takes Hold as Sublease Space Shrinks and New Construction Hits Multi-Decade Low

• The U.S. office market continues to show signs of stabilization, with national vacancy declining year-over-year for the third consecutive quarter in Q3 2026, according to Cushman & Wakefield. Net absorption has remained positive for five consecutive quarters, and new office construction is on track to reach its lowest level in over 30 years, contributing to a tightening market. This recovery, however, remains uneven, with top-tier properties outperforming Class B and C assets, reinforcing a "flight-to-quality" trend.

  Cushmanwakefield

• Despite the office sector's stabilization, broader commercial real estate transactions are being suppressed by ongoing rate volatility, making it exceptionally difficult for buyers and sellers to find common ground. Peachtree Group's CEO, Greg Friedman, noted that a significant wave of commercial loan maturities cresting in 2026 is forcing some owners into difficult refinancing decisions, potentially leading to sales or even property handbacks.

  Mpamag

• In a notable and somewhat surprising development, FIFA inked a $4 million deal for space in Trump Tower in New York on October 13, 2026, despite having no intention of launching an office there. This transaction has reportedly raised ethical and tax concerns within the reigning soccer body.

  Therealdeal