Cresa Maps Out the Most Landlord- and Tenant-Friendly Markets
North American office markets are stabilizing, with occupiers holding leverage in cities with strong demographics and diverse industries, according to the Winter 2026 North American Office Index by Cresa released exclusively to GlobeSt.com. The index evaluates 11 metrics, including leasing momentum, market rents, occupancy and construction, to create a ranking of markets that are either landlord- or tenant-favorable.
Large office markets have diverged sharply following the pandemic. Cities with diversified industries, including finance, legal and insurance, have rebounded, while tech-heavy West Coast markets like Los Angeles, Seattle and San Francisco remain tenant-friendly due to job losses and remote work, the Cresa report said. Montreal is the most landlord-favorable, while New York, Charlotte and Dallas also show strong landlord performance.
High-quality office spaces are in demand, particularly in New York and Charlotte, where tenants seek upgraded environments. Return-to-office policies have boosted certain markets, while Los Angeles, Seattle, San Francisco, Boston and Denver offer tenants leverage in lease negotiations. Leasing activity has been strong in growing southern cities, though rent growth is modest overall, averaging 0.24% quarterly. Vacancy and sublease metrics highlight tenant opportunities in Houston and San Francisco, while Detroit and Montreal maintain low sublease availability. Construction is limited, except in Austin and Boston, where supply is waiting for demand.
Mid-sized markets show uneven recovery shaped by population growth, economic diversification and building obsolescence, said Cresa. Florida cities like Miami and Tampa have outperformed due to corporate relocations and tax advantages, while California markets such as Oakland and San Diego face high vacancies and slow rent growth, favoring tenants. Salt Lake City and San Antonio benefit from limited construction and corporate migration to business-friendly states.
Leasing tracks population trends: strong in Tampa, Miami, Kansas City, Nashville, and Vancouver, but weaker in declining areas like Milwaukee. Occupancy is strongest in Vancouver and Ottawa, and construction is active in Nashville, Miami and Vancouver, offering tenants more options. Tenant-favorable markets include East Bay, San Diego, Milwaukee, Baltimore, Portland, Northern New Jersey and Pittsburgh. Landlord-favorable markets include Tampa, Miami and Kansas City.
Smaller markets attract regional firms, startups and professional services, with lower rents and operating costs supporting steady demand despite hybrid work trends, the analysis found. Speculative construction is rare, though Boise, Huntsville and Palm Beach have seen notable projects, raising vacancy rates.
Over the past year, 61.8% of small markets reduced vacancies, and 38 markets recorded positive net absorption of 4.67 million square feet (1.2% of total inventory). Strong leasing occurred in Las Vegas, Charleston, Knoxville and Columbia, while slower activity affected New Orleans and Jackson, Missouri. Harrisburg leads in occupancy metrics, while Akron, New Orleans and Memphis favor tenants.
Construction is limited, with exceptions in Palm Beach, Omaha and Huntsville. Tenant-favorable small markets include New Orleans, Memphis, Akron, Oklahoma City, Birmingham, Worcester, New Haven, Rochester, Richmond, Edmonton and the Golden Horseshoe; landlord-favorable markets include Knoxville, Harrisburg, Columbia, Fort Myers, Albuquerque, Jackson, Las Vegas, Winston-Salem and Lehigh Valley.
Source: GlobeSt/ALM