CoStar Group reported a 5% year-over-year increase in U.S. office leasing activity for 2025, with tenants signing an estimated 410 million square feet of new leases. This marks a rebound from 2024’s 15-year low (excluding 2020) and represents the first time since early 2022 that three consecutive quarters exceeded 100 million square feet. Although average lease sizes are 15% below the pre-pandemic five-year average—settling at roughly 3,500 square feet—transaction volume reached near-record levels, with approximately 30,000 lease deals executed. Boston led all major markets with a 52% annual surge, restoring its leasing volume to its five-year pre-pandemic average, while San Jose and San Francisco each posted 40% gains driven by technology sector demand. Declines were observed in Seattle, Atlanta, Houston and Philadelphia.

Apartments.com, part of CoStar Group, recorded a national average rent of $1,708 in December 2025, up 0.1% from November’s revised $1,707 and reversing five months of flat or negative monthly changes. Annual rent growth eased to 0.66%, down from 0.74% in November and 1.5% at the start of 2025. Regionally, the Midwest led with a 0.12% monthly increase and 2.2% annual growth, while the West remained the only region with a monthly decline of 0.01% and a 1.4% year-over-year decrease. Among the top 50 metros, 25 posted gains in December—up from seven in November—with San Francisco at +0.64%, Norfolk +0.53% and Richmond +0.42%. Portland experienced the steepest monthly drop of 0.29%, and Austin led annual declines at 4.6%. These results underscore CoStar’s data intelligence in tracking evolving supply pressures and seasonal rent cycles.