Office Vacancy Rates by City 2026 (and What They Mean for Your Lease Negotiation)

Every market with a rate above the 19.8% U.S. average is a place where landlords are competing for tenants. Seattle at 32.6% and San Francisco at 29.3% sit far above that line, while Miami at 13.9% is a landlord's market.

The national rate has barely moved, slipping from 20.1% in Q3 2025 to 19.8% in Q3 2026. That is a slow thaw, not a rebound, so tenant bargaining power is still intact in most cities.

The regions sit within a narrow band, from 19.0% in the Northeast to 20.7% in the Midwest. City and submarket matter far more than region when you size up your position.

These are the markets where empty space is being filled fastest. San Francisco fell 410 bps, yet at 29.3% it still has more vacancy than almost any other city, so a falling rate does not always mean a tight market.

Asking rent and vacancy do not always move together. Miami asks $67.77 per square foot with only 13.9% vacancy, while Los Angeles CBD asks $47.48 with the highest vacancy of the 92 tracked markets, so expect deeper discounts off the asking number there.

Office vacancy and asking rent for all 92 U.S. markets tracked by Cushman & Wakefield, Q3 2026

Source: Cushman & Wakefield, U.S. Office MarketBeat Q3 2026. Download as image

What is the office vacancy rate by city in 2026?

The overall U.S. rate was 19.8% in Q3 2026, but the city numbers tell the real story. The highest rates are in big metros: Los Angeles CBD at 33.3%, Seattle at 32.6%, San Francisco at 29.3%, Oklahoma City at 28.1%, and Austin and Denver both at 27.1%. Chicago sat at 25.9% and Dallas at 24.8%.

At the other end are smaller markets where offices are hard to come by. Savannah was the tightest of the 92 markets at 4.1%. Roanoke was at 6.7%, Charleston at 6.8%, and Tucson and Grand Rapids at 7.4%.

Then there is the middle of the pack, where most negotiating happens. Philadelphia at 19.7% and Boston at 19.0% sit right around the national figure, though Boston climbed from 17.7% a year earlier. Midtown Manhattan was at 17.0% and Nashville at 16.7%. In these cities, your result depends heavily on the building, its age and how long the space has been listed.

Two quick notes on reading the table. Overall vacancy counts both direct space from landlords and sublease space from tenants trying to unload it. And the Q3 2026 figures are preliminary, so expect small revisions.

Is office vacancy going down?

Yes, but slowly. The national rate eased from 20.1% in Q3 2025 to 19.8% in Q3 2026. Tenants took up a net 15.5 million sq ft over the past four quarters, while only 7.1 million sq ft of new space was delivered in the first three quarters of 2026. Less new supply plus steady demand is what pulls vacancy down.

The recovery is uneven. Class A vacancy fell 60 bps over the year, which suggests the best buildings are filling first while lower-quality space is slower to lease. Some cities moved the wrong way, too. Chicago rose from 24.3% to 25.9%, and Seattle climbed from 31.3% to 32.6%.

For you, the takeaway is simple. If you want a trophy building in a city where Class A is tightening, your discount window is narrowing. If an older building will do, landlords are still motivated.

What does a high vacancy rate mean for your lease negotiation?

High vacancy means the landlord needs you more than you need that particular suite. Every month a floor sits empty, they pay taxes, insurance and upkeep with no rent coming in. That gives you room to ask for things a landlord in a tight market would refuse.

Asking rent is only the opening number. U.S. gross asking rent averaged $38.65 per square foot, with growth of only 0.5% over the year. In a high vacancy city, what you actually pay can land well below the listed figure once free months and build-out money are counted.

Say you run a small design firm looking at space in Denver, where vacancy is 27.1%. You can reasonably ask for several months of free rent, a generous improvement allowance, a smaller annual escalation and a right to end the lease early. A tenant in Charleston, at 6.8%, would be lucky to get one of those.

How do you use vacancy data when you negotiate an office lease?

• Start with your city's rate from the table, then ask the broker for the vacancy in your specific building and submarket. A half-empty tower in a tight city still gives you room.
• Check sublease listings nearby. Sublease space is often cheaper and comes furnished, and it gives you a real alternative to point to.
• Put concessions in the lease itself, not in an email or a broker's flyer. Free rent, improvement money and caps should all be written terms.
• Ask for flexibility instead of only a lower rate: an early termination right, a contraction option, or the right to sublet without unreasonable refusal.
• Start renewal talks well before your notice deadline. Miss that date and your renewal option can lapse, which leaves you with little room to bargain.
• Compare your offer against national benchmarks for free rent and improvement allowances so you know when a deal is merely average.

What if your city has low office vacancy?

In a tight market like Savannah, Tucson or Charleston, the landlord holds most of the cards. You will see fewer giveaways, and asking rent is closer to what you will actually pay.

Your focus shifts from discounts to protection. Lock in a renewal option with a capped rent increase so you are not priced out at the end of your term. Ask for a right of first refusal on neighboring space if you expect to grow. Read the operating expense clause closely, because in a hot market landlords often pass through more costs rather than lowering rent.

Watch the trend, too. Tucson dropped 280 bps in a year to 7.4%. Markets that tighten quickly tend to see the strongest rent pressure at renewal.

What should freelancers and small teams take from these numbers?

If you only need a few desks, high vacancy cities are good news. Companies with too much space are trying to sublease it, sometimes at steep discounts and with furniture included. In places like Los Angeles, Seattle or San Francisco, it pays to look past coworking memberships.

Subleases carry their own risks, though. Your rights depend on the original lease between the landlord and the tenant you are renting from. If that tenant defaults, you can lose the space. Ask to see the master lease, confirm the landlord has consented in writing, and avoid signing a personal guarantee for longer than your sublease runs.

Sources and method

Every number on this page comes from the sources below, each opened and read on or before October 18, 2026. A second, independent review checked every figure against its source and corrected anything that did not match. Figures that could not be confirmed were left out.

1. Cushman & Wakefield, U.S. Office MarketBeat Q3 2026 (Q3 2026 edition (October 14, 2026))