Office markets face supply shortages and fluctuating demand

Commercial office markets are experiencing divergent trends regarding supply and demand. In the United States, high-end office availability is falling in most tracked markets, including Manhattan and San Francisco. This shortage is compounded by a significant decline in new construction; the Americas' office construction pipeline has dropped approximately 82% from its 2020 peak. Consequently, flexible office inventory in the U.S. has grown to 3.1% of total national inventory as occupiers seek alternative workspace solutions.

In Manchester, the office market saw a slowdown in the third quarter of 2026, with 155,000 square feet of deals signed. This represents a decrease compared to both the previous quarter and the same period in 2025. The city is currently on track to potentially fall short of its 1 million square foot annual take-up target. While city center performance was described as poor, out-of-town take-up remained active, supported by transactions in areas such as Didsbury and Salford Quays.