Boston Leads 2025 U.S. Office Leasing Growth, CoStar Reports

Reuters01-09

Boston Leads 2025 U.S. Office Leasing Growth, CoStar Reports

U.S. office leasing activity increased by 5% in 2025, according to year-end data from CoStar Group Inc., a leading provider of real estate information and analytics. The report highlights Boston as the top growth market, with leasing activity surging 52% year-over-year and returning to its pre-pandemic five-year average. San Jose and San Francisco also saw strong gains, each recording a 40% increase, fueled in part by demand from AI firms. In contrast, markets such as Seattle, Atlanta, Houston, and Philadelphia experienced declines in leasing activity. Overall, office tenants signed for an estimated 410 million square feet of space in 2025, marking three consecutive quarters of leasing volume above 100 million square feet for the first time since early 2022. Despite the rebound, average lease sizes remain more than 15% smaller than pre-pandemic levels, and overall leasing activity has not yet returned to the highs seen in the late 2010s.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. CoStar Group Inc. published the original content used to generate this news brief via Business Wire (Ref. ID: 20260109610358) on January 09, 2026, and is solely responsible for the information contained therein.

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The report highlights Boston as the top growth market, with leasing activity surging 52% year-over-year and returning to its pre-pandemic five-year average. San Jose and San Francisco also saw strong gains, each recording a 40% increase, fueled in part by demand from AI firms. In contrast, markets such as Seattle, Atlanta, Houston, and Philadelphia experienced declines in leasing activity. Overall, office tenants signed for an estimated 410 million square feet of space in 2025, marking three consecutive quarters of leasing volume above 100 million square feet for the first time since early 2022. Despite the rebound, average lease sizes remain more than 15% smaller than pre-pandemic levels, and overall leasing activity has not yet returned to the highs seen in the late 2010s.\n      \n\n\nDisclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. 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