Office Real Estate Market Report 2026

The office real estate market size has grown strongly in recent years. It will grow from $2106.71 billion in 2025 to $2.24 trillion in 2026 at a compound annual growth rate (CAGR) of 6.3%. The growth in the historic period can be attributed to expansion of corporate service industries, growth of urban commercial hubs, increasing foreign direct investment in office assets, rising demand for centralized business locations, long-term lease preference by enterprises.

The office real estate market size is expected to see strong growth in the next few years. It will grow to $2859.7 billion in 2030 at a compound annual growth rate (CAGR) of 6.3%. The growth in the forecast period can be attributed to increasing adoption of flexible workspace models, rising investments in green-certified office buildings, growing demand for smart and connected offices, expansion of coworking and managed office spaces, increasing focus on asset repositioning strategies. Major trends in the forecast period include increasing adoption of hybrid work-oriented office designs, rising demand for flexible lease structures, growing focus on energy-efficient office buildings, expansion of smart building management systems, enhanced emphasis on tenant experience and wellness.

The rise in white-collar employment is expected to drive growth in the office real estate market. White-collar employment refers to professional or administrative roles involving mental tasks typically performed in office environments rather than physical labor. This type of employment is increasing as businesses increasingly implement digital technologies, boosting demand for skilled professionals in fields such as IT, data analysis, and cybersecurity. Office real estate plays a crucial role by providing the physical infrastructure necessary for administrative, professional, and collaborative workspaces, which support productivity, team interaction, and access to business resources. For example, in June 2024, a report by CompTIA, a UK-based trade association, noted that tech employment in the United Kingdom reached 2,130,745 in 2023, marking a 3.4% increase from 2022. Therefore, the growing white-collar workforce is expected to propel expansion in the office real estate market.

Key players in the office real estate market are focusing on innovative solutions such as enterprise leasing platforms to improve tenant experience and optimize space usage, adapting to the changing needs of businesses in a hybrid work environment. Enterprise leasing platforms are digital tools that assist large organizations in efficiently managing, tracking, and optimizing commercial real estate leases across multiple office sites. For instance, in April 2025, Incuspaze, an India-based workspace solutions provider, launched FlexLeaze, a leasing platform designed for large and mid-sized companies. FlexLeaze offers fully customized office interiors along with operational leasing of infrastructure, warehousing, and machinery, eliminating the need for ownership. The service is designed to be tax-efficient and flexible, converting capital expenditures into operational expenses, which helps businesses reduce upfront costs and concentrate on growth. Offering an end-to-end service that covers design, construction, compliance, and maintenance, FlexLeaze delivers ready-to-use premium workspaces while Incuspaze manages all workspace-related responsibilities.

In March 2023, Conning Holdings Limited, a US-based investment management firm, acquired Pearlmark Investment Company L.L.C. for an undisclosed sum. This acquisition aims to strategically expand Conning’s investment platform by incorporating Pearlmark’s expertise in commercial real estate debt and equity, thereby enhancing Conning’s ability to provide a wider range of real estate investment solutions to institutional clients while supporting Pearlmark’s continued growth and operational autonomy. Pearlmark Investment Company, LLC, is a US-based commercial real estate investment firm with office real estate investments as part of its diversified portfolio.

Major companies operating in the office real estate market are International Business Machines Corporation, CBRE Group Inc., Jones Lang LaSalle Incorporated, Skanska AB, Mitsubishi Estate Co Ltd., Cushman & Wakefield plc, Hines Interests Limited, Colliers International Group Inc., Unibail Rodamco Westfield SE, Boston Properties Inc., Savills plc, Vornado Realty Trust, Brookfield Asset Management Ltd., Tishman Speyer Properties LP, PGIM Inc., Knight Frank LLP, Gecina SA, DLF Limited, SL Green Realty Corp, Dexus Property Group, Derwent London plc, Panchshil Realty Private Limited, Prestige Estates Projects Limited

North America was the largest region in the office real estate market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the office real estate market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the office real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The office real estate market includes revenues earned by entities by providing services such as leasing and rental services, property management, broking services, space planning and interior design, and facility management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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