The first three months of 2026 were the most active period for office landlords since before the pandemic.

Office tenants signed roughly 120M SF in new leases in the first quarter of the year, a 25% increase compared to the first quarter of 2025 and the highest quarterly total since 2018, according to a CoStar report.

The surge was largely driven by a higher volume of smaller leases — a trend that emerged after the pandemic. The number of leases signed hit its highest point going back a decade.

“While the quarterly figure signifies continued momentum for national office recovery, the composition of leasing activity reflects an intensification of patterns that have emerged in the leasing office market since the pandemic began,” CoStar National Director of Office Analytics Phil Mobley wrote in the analysis.

Since the beginning of 2023, new lease sizes remained about 15% below pre-pandemic averages, due in part to restricted hiring and the lack of larger space in newer buildings, according to the report.

Smaller leases also tend to be more fluid with shorter terms, promoting more leasing activity.

Amid the surge, almost half of the nation’s largest office markets have had leasing return within 10% of their pre-pandemic averages — primarily led by Charlotte, New York City, Miami and San Francisco, which are above their 2015 to 2019 averages.

Courtesy of CoStar Group

The demand from banks and financial institutions, which have maintained a higher in-office attendance record, has uplifted leasing recovery. That trend is particularly strong in Charlotte, where Citigroup, JPMorgan Chase and Sumitomo Mitsui Banking Corp. have all announced significant expansions.

But there are still a handful of metropolitan areas — including Atlanta, Washington, D.C., Chicago, Denver, Seattle, San Diego and Philadelphia — that are still below 20% of their pre-pandemic average of office leasing activity.

Looking forward, the first quarter’s momentum may not be sustainable through 2026 amid economic and uncertainty pressures, Mobley wrote.

“On the demand side, the return-to-office movement is reaching its apogee, and job growth remains tepid,” he wrote. “Rising energy costs associated with the conflict with Iran also present a headwind to economic growth and, in turn, to demand for office space.”

Flournoy Development Group has wrapped up construction on the 341-unit, mixed-use community Ellison Mallard Creek in Charlotte. The community is located at 930 West Mallard Creek Church Rd.

Ellison Mallard Creek features 210 one-bedroom units, 149 two-bedroom homes and 38 three-bedroom units. Additionally, it has 56 for-rent townhomes. The community also has flexible ground-floor retail, office and commercial spaces. Rents range from $1,400 to $2,700 a unit. Tenants who sign a lease are offered two months’ free rent and a $500 gift card.

Amenities include a central greenspace, electric charging stations, communal and private coworking spaces, a fitness and wellness center, a pool and entertainment courtyard, designated craft spaces and a resident club room with gaming and grab-and-go market areas.

Private balcony/patios are available in select homes as is direct access garages.

BMO Bank arranged a $59.6 million construction loan for the property in late 2021.

Eden Prairie Center announced the center is adding to its lineup of retailers and restaurants in 2024. The latest tenants include Wonders Ice Cream, Reborn Salon, Virtual Realm Adventures, Costumes & Toys and Cielito Lindo. Eden Prairie Center is a 1.4 million-square-foot, two-level retail property in Minnesota managed by JLL.

“We’re proud to welcome five new tenants to our growing mix of national and local retailers at Eden Prairie Center,” said Nancy Litwin, Eden Prairie Center’s Senior General Manager. The tenants include Cielito Lindo, which offers authentic Mexican cuisine with unique dishes, and Wonders Ice Cream, a family-owned and operated rolled ice cream shop.

Reborn Salon offers a full range of professional services, including haircuts, color, and treatments, while Virtual Realms Adventures offers a unique entertainment experience with a variety of games through virtual reality goggles. Also coming to the retail center is Costumes & Toys, a boutique that offers a selection of children’s superhero costumes and accessories.

The Keith Corp. has signed up three new tenants at The Thread, the reconverted textile mill near downtown Rock Hill. The $100 million project highlights the renovation of the 400,000 thousand square foot building, which will include office, retail and hospitality uses. Apartments are slated in the next phase.

The new tenants will take up about 11,000 square feet. Entertainment venue Mayfair has signed up for nearly 17,000 square feet. Mayfair is putting in a Roar, a family entertainment concept. It will feature bowling, mini golf, arcade games, live performances, a full-service kitchen and a bar.

The Charlotte Business Journal reports The Thread’s first phase will also include 170,000 square feet of office space above the retail. Springs Creative is the anchor office tenant, occupying around 30,000 square feet.

The Keith Corp. is leading development of The Thread alongside Springsteen Properties Inc. and Capitol Broadcasting Co. Inc.

It was once timberland, owned by the New Zealand lumber company Rayonier. Through its subsidiary, Raydient Places + Properties, the company is the developer of Wildlight, which is in far NE Florida.

Wildlight is a master-planned mixed-use development in Nassau County. Two of its varied rental projects are actively seeking renters. The mix of newly constructed single-family rental homes and luxury apartments brings Wildlight 550 additional housing units.

Hamlet at Wildlight, developed by Middleburg Communities, has 250 cottages and townhomes, with one-, two- and three-bedroom homes. Amenities include a fitness center, a pool, dog park, and a clubhouse.

Exchange at Wildlight is a community of apartment homes developed by Hathaway Companies. It boasts 300 units, and residents enjoy balconies or patios, a clubhouse, 24/7 package concierge lockers, a pool, cybercafé, fitness center, dog park and electric car charging stations. Private garages are also available.

MDH Partners has completed 1.5 million square feet of leasing across two industrial buildings in Georgia in the past 45 days. These deals include a lease with a solar manufacturer at a facility in Atlanta’s northwest industrial submarket and a full-building deal with a third-party logistics company in the Savannah market. 

A solar panel manufacturer will occupy 843,000 square feet at Busch Commerce Center in Cartersville, Georgia. Completed last fall, the 1.2-million-square-foot, Class-A bulk industrial facility was constructed by MDH Partners and CF Real Estate Investments.

On the heels of acquiring the newly constructed warehouse in October 2023, MDH has secured a third-party logistics firm to fully lease the 655,000-square-foot Beltway Logistics Center near Savannah, Georgia. Located in Bloomingdale, Georgia, Beltway Logistics Center is 15 miles from the Port of Savannah and less than one mile from the I-16 interchange. Darren Butler led a team with NAI Brannen Goddard that represented MDH Partners in the two deals. 

Deer Park Town Center, an outdoor lifestyle shopping center in Deer Park, Illinois, is adding to its lineup of retailers and restaurants in 2024. The center is managed by JLL and features a collection of more than 60 premier retail, restaurant and service brands.

The latest tenants include Victoria’s Secret, Clean Juice, Ancho & Agave, Aerie and The Shade Store. Victoria’s Secret specializes in fashion collections including intimates, sleepwear, swim, fragrances and athleisure.

Clean Juice offers organic and cold-pressed juices, smoothies, and protein smoothies, while Ancho & Agave offers fresh Mexican food and drinks including tacos, burritos, quesadillas, and margaritas.

The Shade Store is a custom window treatment company that offers a complete range of in-person and virtual design services, and Aerie is a lifestyle brand with feel-good collections of intimates and apparel. Deer Park Town Center is a pedestrian-friendly shopping destination located at Rand Road and Long Grove Road.