Office market brief — Q3 2026: Demand returns to central locations

After three years of suburban drift, the pendulum is swinging back. Central submarkets across our three metros posted positive net absorption for the second straight quarter — while outlying office parks are still giving space back.

What the numbers say

Downtown vacancy has tightened roughly a full point since spring, and face rents on renovated Class A floors are holding firm even as concessions narrow. The driver is familiar: firms consolidating into fewer, better buildings where transit, talent, and client access overlap. Flight to quality is no longer a headline — it is the entire market.

Suburban product tells the other story. Generic 1980s floor plates without amenity investment continue to sit, and the discount to downtown on a per-head basis has nearly vanished once parking, commute subsidies, and fit-out are counted honestly.

What occupiers should do now

First, re-run the math on central versus suburban with total occupancy cost, not face rent. Second, move early on renovated blocks: landlords holding three or more qualified tours a week stop negotiating on economics and start negotiating on term. Third, lock optionality — renewal rights and contraction language cost little to secure today and prove invaluable in year four.

What owners should do now

Price with conviction but concede on speed: spec suites between 3,000 and 8,000 sqft are leasing in half the time of raw floors. And report tour activity honestly — in a two-speed market, stale pricing is punished within weeks, not quarters.