Office

WHAT’S NEXT FOR THE U.S. OFFICE MARKET?

by Matthew Auchincloss August 4, 2026

By Matthew Auchincloss The office sector may never be going back to pre-pandemic utilization levels, but enough time has elapsed and data compiled to make the case that the asset class is stabilizing. According to data from CoStar Group, leasing activity remained steady in the second quarter, with 115 million square feet of new leases signed (renewals were not included in the data) of 2026. That remains approximately 9 percent below the quarterly average from 2015 through 2019 but is far above the leasing volume from 2020 and 2021. The national vacancy rate is down 50 basis points from one year ago and 20 basis points in the past quarter, currently sitting at around 18 percent, according to CoStar. Rental rates are also up, averaging approximately $38.06 per square foot nationally — a 2.3 percent increase from last year, according to Colliers. Class A rates currently sit around $43.76 per square foot, with a sharp divide between commercial business district (CBD) rates and suburban product. CBD rates dropped 10 basis points from the first quarter, but the $52.52 per square foot price tag is still up slightly year-over year (70 basis points). Suburban rates are much lower at approximately $37.74 …

August 4, 2026

Keystone Completes Office-to-Residential Conversion Project in Philadelphia

by Taylor Williams August 4, 2026

PHILADELPHIA — Local developer Keystone has completed an office-to-residential conversion project in Philadelphia’s Independence Mall district. Designed by Tantillo Architecture and built by Fasttrack Construction, the project transformed the historic, 12-story building at 400 Market St. into a 176-unit apartment complex known as 400 Market Flats. Units come in studio, one- and two-bedroom floor plans, and amenities include coworking space and a rooftop terrace. Keystone developed the project, which opened with 40 percent of the units preleased, in partnership with Lubert-Adler.

August 4, 2026

Leasing Activity Massachusetts Northeast Office

Autodesk Signs 72,000 SF Office Lease Renewal in Boston’s Seaport District

by Taylor Williams August 4, 2026

BOSTON — Autodesk has signed a 72,000-square-foot office lease renewal in Boston’s Seaport District. The provider of 3D design, engineering and entertainment software will remain at the Innovation & Design Building, a 1.4 million-square-foot mixed-use building that was originally constructed in 1918 as a waterside storehouse for the South Boston Army Base. Luke Wilson of Colliers represented Autodesk in the lease negotiations. A partnership between Related Beal and Jamestown owns the building.

August 4, 2026

Illinois Loans Midwest Office

JLL Secures $213M Refinancing for Chicago Office Tower

by Kristin Harlow August 4, 2026

CHICAGO — JLL Capital Markets has secured a $213 million refinancing for 360 North Green, a 500,000-square-foot office tower in Chicago’s Fulton Market. Lucas Borges, Geoff Goldstein, Danny Kaufman, Kelly Gaines, Emma Berner and Ryan Planek of JLL secured the three-year loan through Barings on behalf of the borrower, institutional investors advised by J.P. Morgan Asset Management and Sterling Bay. Designed by Gensler and delivered in 2024, 360 North Green rises 24 stories and features two outdoor terraces per floor, a 4,000-square-foot roof deck, 6,500-square-foot fitness center, outdoor conference space and the Adalina Prime restaurant. The property is currently 76 percent leased and home to tenants such as Boston Consulting Group and Greenberg Traurig.

August 4, 2026

Development Illinois Midwest Office Restaurant Retail

Friedman Properties Completes Riverwalk Replacement at Reid Murdoch Building in Chicago

by Kristin Harlow August 4, 2026

CHICAGO — Friedman Properties has completed reconstruction of the riverwalk at the Reid Murdoch Building in Chicago’s River North neighborhood. Together with renovations at River Roast, the forthcoming opening of The Carlyle Club and prior ground-level improvements, the updates represent approximately $15 million in recent investment at the property, which features a 300-foot riverwalk connecting Clark Street to LaSalle Drive. The latest renovation nearly doubled the width of the previous riverwalk and introduced a series of 10-foot-tall double doors in the south elevation, creating new opportunities for outdoor dining and improving pedestrian circulation. The work also included new precast piers, railings, lighting, integrated planters and improved access from the river level for visitors arriving by boat. Coinciding with the redevelopment of the riverwalk, operator Levy Restaurants has completed renovations of River Roast, the 28,000-square-foot riverfront venue located in the building. The restaurant’s main event space, which has been rebranded RR Events, now features a new riverside entrance with a curved grand staircase, dual-sided bars and upgraded lighting fixtures, furniture, flooring and tableware. The renovation also added Corner Roast, a new coffee concept with its own entrance. Friedman also closed a lease with The Carlyle Club, scheduled to open at the …

August 4, 2026

Development New York Northeast Office

Partnership Underway on Renovation of 22-Story Office Building in Midtown Manhattan

by Taylor Williams August 3, 2026

NEW YORK CITY — A partnership between A.M. Property Holding Corp., Axonic Capital and Platinum Properties is underway on the renovation of 11 Bryant Park Plaza, a 22-story office building in Midtown Manhattan. Designed by Spectorgroup, the renovation will involve the upgrading of existing office suites and the repositioning of upper-level floors to feature tenant amenities. The project team will also upgrade the lobby and elevators. Demolition work on the building’s top two floors is nearly complete, and renovations will be delivered in phases over of the second half of this year and early next year.

August 3, 2026

Development Illinois Midwest Multifamily Office

Skender Begins Conversion of Chicago Office Tower into 320 Apartment Units

by Kristin Harlow July 31, 2026

CHICAGO — Skender has begun construction on the 500 N. Michigan Ave. adaptive reuse project, which will convert the 400,000-square-foot office tower into 320 apartment units on Chicago’s Magnificent Mile. The project team includes Connecticut-based Commonwealth Development Partners and GREC Architects. Completion is slated for late 2027. Originally designed by Skidmore, Owings & Merrill and completed in 1968, the building rises 24 stories and 304 feet tall. The conversion will transform vacant floors three through 23 into residential dwelling units, while a new 25th floor with amenity space will be constructed atop the building, adding 17 feet to its height. Level 24 will house mechanical systems, and floors two through five will include additional amenity programming. Ground-floor retail will be retained. Skender’s scope of work includes full interior demolition of the existing vacant office spaces, elevator modernization throughout all floors and the complete build-out of residential units and amenity spaces.

July 31, 2026

Leasing Activity Massachusetts Northeast Office

Advocates Signs 95,182 SF Office Lease in Marlborough, Massachusetts

by Taylor Williams July 31, 2026

MARLBOROUGH, MASS. — Advocates, a nonprofit organization that supports people with behavioral health disorders, disabilities and brain injuries, has signed a 95,182-square-foot office lease in the western Boston suburb of Marlborough. The deal brings the 160,649-square-foot building at 251 Locke St. to full occupancy. Alison Powers and Robert Walles of JLL represented the landlord, Related Beal, in the lease negotiations. Jon Pezzoni of Avison Young represented Advocates.

July 31, 2026

Development New York Northeast Office

JT Magen Completes 42,000 SF Build-to-Suit Office Project in Midtown Manhattan

by Taylor Williams July 31, 2026

NEW YORK CITY — National construction firm JT Magen has completed a 42,000-square-foot office project in Midtown Manhattan that is a build-to-suit for auction house Bonhams. Bonhams is relocating from a 32,000-square-foot space at 580 Madison Avenue to the four-story space at 111 W. 57th St., which will serve as the company’s new flagship location. Gensler served as the project architect.

July 31, 2026

District of Columbia Leasing Activity Office Southeast

Columbia Property Trust Signs 72,000 SF of Leases at Office Tower in Downtown D.C.

by Abby Cox July 31, 2026

WASHINGTON, D.C. — Columbia Property Trust has signed a mix of six office and restaurant leases at 1800 M Street, a recently repositioned, 565,000-square-foot office tower located in Washington, D.C.’s Central Business District. Totaling approximately 72,000 square feet, the deals include new arrivals, extensions, an expansion and two renewals. Boutique law firm Wilkinson Barker signed an eight-year extension for its 33,971-square-foot office; an unnamed communications and public affairs firm signed a 6,288-square-foot expansion and an eight-year extension, where its footprint will grow to 15,061 square feet; the Association of Women’s Health, Obstetric and Neonatal Nurses (AWHONN) signed a nine-year renewal for 9,574 square feet; and the American Academy of Family Physicians signed a new 10-year lease for 9,658 square feet to relocate its former office from the nearby 1133 Connecticut Avenue office building this fall. In addition to office tenants, Columbia has signed Sorn Thai (4,095 square feet) and Italian restaurant Sorella on the ground floor. Over the past two years, the landlord has secured more than 242,000 square feet in leases, bringing 1800 M Street to 83 percent occupied. Columbia also recently renovated the building’s conference facility, lounge, rooftop terrace, lobby and concourse level. Tenants were represented by agents …

July 31, 2026

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