# Global commercial office market supply and demand trends

> Live situation record from CLSTR: https://clstr.news/situations/global-commercial-office-market-supply-and-demand-trends
> Updated: 2026-10-20T10:30:45.000Z. Sources: 4. Developments: 2.

Global commercial office markets are experiencing significant shifts in supply and demand dynamics. In London and Perth, markets are facing tightening availability. London is seeing a structural squeeze for small and medium-sized enterprises as large corporations compete for boutique spaces, while new completions for 2026 are expected to decrease by approximately 40% year-on-year. In Perth, vacancy rates are forecasted to drop significantly by 2030 due to a lack of new developments.

In the United States, high-end office availability is declining in major markets like Manhattan and San Francisco, alongside an 82% drop in the Americas' office construction pipeline from its 2020 peak. This has led to an increase in flexible office inventory as occupiers seek alternatives. Meanwhile, Manchester has seen a slowdown in office deals, with the city potentially falling short of its annual take-up targets, though out-of-town areas like Salford Quays remain active.

## Timeline

### 2026-10-20: Office markets face supply shortages and fluctuating demand

U.S. office markets face a shortage of high-quality space due to a collapsing construction pipeline, while Manchester reports a slowdown in office take-up for the third quarter of 2026.

2 sources. https://clstr.news/cluster/office-markets-face-supply-shortages-and-fluctuating-demand

### 2026-10-05: Global office markets face supply shortages in London and Perth

Office markets in London and Perth are facing tightening vacancy rates as high demand for quality space meets a significant shortage in new supply.

2 sources. https://clstr.news/cluster/global-office-markets-face-supply-shortages-in-london-and-perth

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Cite as: Global commercial office market supply and demand trends. CLSTR, https://clstr.news/situations/global-commercial-office-market-supply-and-demand-trends