CoStar Group’s year-end data shows U.S. office leasing activity climbed 5% in 2025 versus the prior year, with tenants signing an estimated 410 million square feet of space. This rebound follows 2024’s trough, the lowest volume in 15 years excluding 2020, and marks the first time since early 2022 that three consecutive quarters exceeded 100 million square feet each. CoStar recorded approximately 30,000 new lease deals last year, though the average lease size of roughly 3,500 square feet remains over 15% smaller than the five-year pre-pandemic norm. At the market level, Boston led all metros with 52% year-over-year growth, restoring its annual volume to the pre-pandemic five-year average. San Jose and San Francisco posted 40% gains, driven largely by AI firms, while Seattle, Atlanta, Houston and Philadelphia saw declines in leasing activity.

Apartments.com, a CoStar Group brand, released its December 2025 rent growth report showing the national average apartment rent rose to $1,708, a 0.1% increase from November’s revised $1,707. Annual rent growth eased to 0.66%, down from 0.74% the prior month and 1.5% at the start of the year. December’s gains snapped a five-month trend of flat or negative monthly changes, with the Midwest leading at +0.12% month-over-month, followed by the South (+0.07%) and Northeast (+0.06%), while the West edged down 0.01%. On an annual basis, the Midwest posted the strongest growth at +2.2%, with the Northeast at +1.5%. San Francisco led metro rent increases at +0.64% for the month and +5.9% annually, while Portland, OR saw the steepest monthly decline at –0.29% and Austin recorded the largest annual drop at –4.6%. Elevated supply pressures in key Sun Belt and Mountain West markets continue to temper rent momentum despite seasonal patterns pointing toward renewed growth in 2026.