Office Market Drivers & Trends Shaping 2026 — Top Priorities for Today’s Tenants
As we move deeper into 2026, the U.S. office market continues to evolve — presenting both challenges and meaningful opportunities for tenants. Hybrid work is no longer a question mark, and the conversation has shifted from how much space organizations need to what kind of space best supports productivity, culture, and long-term flexibility.
Whether you’re renegotiating an existing lease or evaluating a potential relocation, focusing on the right priorities can unlock stronger economics today while positioning your workplace for what’s next.
At CBIZ Gibraltar, our team continuously monitors office market conditions nationwide, tracking shifts in vacancy, capital flows, tenant behavior, and building performance. From this perspective, several key trends stand out with insights that tenants can leverage to gain a strategic and economic advantage in the current landscape.
In this video, CBIZ Gibraltar’s Steve Joseph outlines the Top Five Priorities for Tenants & Trends Shaping the 2026 Office Market:
1. Flight to Quality & Amenities Driving Leasing Activity
Even though overall office vacancy remains elevated, higher absorption for premium space continues and the trend isn’t slowing in 2026. Tenants are increasingly favoring Class A, amenity-rich buildings over older Class B/C assets. Space that offers modern layouts, flexible floor plates and collaborative spaces with some combination of outdoor areas, wellness features, and transit access is capturing most of the demand.
2. Vacancy Rates Still High but Expected to Stabilize
In Chicago’s Central Business District, office vacancy has hovered at historically high levels (near ~26% to 28%), yet there are early signs vacancy could moderate as obsolete space is removed and leasing momentum improves. National outlooks anticipate office vacancy down by late 2026 as demand broadens. In fact, recent data shows early signs of stabilization, particularly in premium segments of the market. Positive net absorption, declining sublease availability, and record-low new construction are all contributing to this shift.
For tenants, this environment still provides leverage — especially when negotiating renewals or relocations — but timing and strategy still matter more than ever.
3. Office Conversions & Adaptive Reuse Growing
With large swathes of underutilized space, office-to-residential and mixed-use conversions are accelerating. Older and secondary office buildings with persistent vacancies are increasingly being converted to residential, hospitality, or other alternative uses.
These projects are often supported by local incentives and declining asset values that make repurposing more feasible. This reduces office supply and adds housing stock, particularly in historically under-occupied buildings.
Nationally, the office-to-multifamily pipeline has reached historic levels, with tens of thousands of units in development. As financing conditions improve, more of these projects are expected to move from planning into execution throughout 2026.
4. Suburban Market Showing Mixed Signals
Suburban office performance remains uneven. While the Chicago suburban office market is seeing positive absorption and demand from tenants relocating or upgrading offices, vacancy rates remain stubbornly high in some submarkets and recovery has been slow.
One area of consistent demand is spec suites. These are pre-built, flexible spaces that allow tenants to move in quickly with lower upfront investment. Suburban locations can offer attractive economics and negotiating leverage, but tenants need to carefully evaluate accessibility, amenities, and alignment with employee expectations.
5. Renewed Investor Interest & Spec Suites Expansion
Fresh capital is flowing back into the office sector, with opportunistic investors targeting undervalued or distressed assets across both urban and suburban markets.
For tenants, the key question is how these investors plan to execute. Will they invest capital to reposition buildings with new amenities and upgrades? Or will they acquire assets as-is, hoping for market recovery? The answer will directly impact tenant experience, operating costs, and long-term value.
In summary, these trends will continue to define today’s office market opportunities and decision-making factors this year. Tenants often still have leverage, but the best outcomes depend on prioritizing quality, flexibility, and alignment with hybrid work realities.
Watch here for an update on the driving forces in commercial real estate with CBIZ Gibraltar. Stay tuned as our teams dive deeper into each of these trends and what they mean for lease strategy and decision-making.
2026 will be a milestone year for office space users. Whether your real estate plans are immediate or far-off, we would like to get to know you and your office space needs.