By Brittney Sherman
Office leasing activity improved in 2025, with tenants signing an estimated 410 million square feet nationwide, a modest rebound from 2024’s 15-year low. Leasing gained momentum over the course of the year, closing with three consecutive quarters above 100 million square feet for the first time since 2022, signaling gradual recovery from post-pandemic weakness.
Despite the increase in total volume and a high number of transactions, the recovery remains uneven. Roughly 30,000 lease deals were signed in 2025—above pre-pandemic norms—but average lease sizes continued to shrink, at about 3,500 square feet, well below late-2010s levels. This combination of higher deal counts and smaller spaces reflects ongoing caution among office tenants and a fragmented recovery across markets.
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