The Pandemic Didn’t Kill the Office. It Killed the Mediocre Office
The office market has turned a corner.
Net absorption was positive for the sixth consecutive quarter in Q4-2025 according to Colliers. Vacancy has peaked and Class A net absorption has been positive for over a year. The construction pipeline hit a 25-year low. And 70% of corporate real estate leaders say their 2026 strategy includes adding office space, up from 56% in 2024.
But here’s what those headlines miss: the recovery isn’t happening equally. Trophy and Class A buildings are capturing a disproportionate share of leasing activity while commodity space continues to struggle although demand is starting to move down the quality spectrum.
The flight to quality that started in 2022 hasn’t slowed down. It’s accelerated. And the CEOs making the decisions about where their companies land in 2026 have a very specific set of priorities that look nothing like the pre-pandemic checklist.
This isn’t 2019’s office market with a fresh coat of paint. The bar has been permanently reset.
Here’s what CEOs are actually prioritizing, and what it means for occupiers evaluating their next move.
The Office Has to Earn the Commute
Office attendance has climbed to roughly 70% of pre-pandemic levels as of late 2025. Employers in the Americas now expect about 3.2 days per week in-office, and employees are showing up about 2.9 days. But here’s the tension: offices are near capacity on peak days for 73% of companies.
CEOs have absorbed a hard lesson from the last five years: you can mandate attendance, but you can’t mandate engagement. The companies seeing real success with return-to-office aren’t the ones with the strictest policies. They’re the ones with spaces that give employees a reason to be there that they can’t replicate at home.
That means the office has to earn the commute, every single day. And that changes everything about how CEOs evaluate space.
Location Has Been Redefined
Location still matters. It might matter more than ever. But the definition has shifted.
In 2019, “good location” meant prestige: a downtown address with a recognizable skyline view. In 2026, CEOs are thinking about location through the lens of friction. How painful is the commute for the people they’re asking to come in three or four days a week? Is there reliable transit access? Is parking realistic for the suburban workforce they’re trying to retain? Are there restaurants, fitness options, and services nearby that make the in-office day feel worth it?
The data backs this up. Markets with the strongest recovery (Miami, Dallas, New York) are also the markets where office foot traffic has returned most aggressively. Miami office visits in December 2025 were just 10.9% below December 2019 levels. Dallas was 18.8% below. New York was 19.6% below. Compare that to Chicago at 47.6% below or San Francisco at 44.8%.
While the 2025 return-to-office (RTO) push made undeniable gains, the pace of the comeback is beginning to normalize.
According to the latest Placer.ai report, national office visits climbed 5.6% year-over-year in 2025—reaching 31.7% of pre-pandemic levels, the highest mark recorded since 2019.
The pattern is clear: employees return to offices in locations where the surrounding environment supports a good workday, not just a productive one.
Shorter commutes and central locations are driving higher attendance.
CEOs are also rethinking portfolio geography. Hub-and-spoke models are gaining traction, with companies maintaining a core headquarters supplemented by satellite offices or coworking suites closer to where employees live. Reduce commute friction, increase attendance.
Strategic site selection has emerged as a critical lever for boosting office attendance. When companies prioritize proximity in their leasing and development decisions, they see a measurable, positive impact on return-to-office (RTO) consistency throughout the workweek.
Hospitality Is the New Standard
The most significant shift in CEO expectations is this: office buildings are being evaluated like hospitality venues, not commercial boxes.
Tenants are demanding wellness centers, curated food options, elevated lobbies, rooftop terraces, and tech-enabled collaboration spaces. The trend isn’t subtle. Major CRE brokerage firms estimates that less than 7 million square feet of new office space will be delivered in 2026, the lowest total since the global financial crisis, which is intensifying competition for what industry insiders are calling “jewel-box” projects: top-tier, highly amenitized buildings in prime locations.
This isn’t about ping-pong tables and beer fridges. That era is dead. CEOs in 2026 are looking for environments that signal investment in the people who work there. Think: high-quality air filtration, abundant natural light, biophilic design elements, premium food and beverage programs, fitness facilities, and flexible event spaces that can host all-hands meetings or client dinners.
As one CRE industry CEO put it, landlords need to “think and act a lot more like hotels.” The 10-year lease as a single product is evolving. Buildings that operate more like service platforms, with programming, community management, and flexible space options, are winning the deals.
Flexibility Is Non-Negotiable
CEOs are designing around the reality that not everyone is in the office every day, and that the office needs to shape-shift depending on who shows up and what they need. Monday might be heads-down focus work for a skeleton crew. Wednesday might be wall-to-wall collaboration with every conference room booked. Friday might be a ghost town.
This means CEOs are looking for floor plates that support modular configurations. Spaces that can flex between individual focus work, team collaboration, large gatherings, and social connection without a construction crew. Conference rooms, huddle spaces, open collaboration zones, and quiet focus areas need to coexist on the same floor.
It also means lease flexibility matters as much as physical flexibility. With 64% of companies saying they’re likely to delay facility changes due to economic uncertainty, CEOs want expansion and contraction rights, and the ability to supplement traditional leases with coworking or flex space. Of those companies planning to add space in 2026, 44% said they would use coworking to do it.
Technology Is Table Stakes
Robust technology infrastructure isn’t a differentiator anymore. It’s a baseline requirement. The hybrid model demands that the office works seamlessly for the people in the room and the people on the screen at the same time.
CEOs expect high-speed connectivity, smart building systems, video-enabled conference rooms that don’t require an IT degree to operate, and digital booking systems for desks and meeting spaces. They’re also evaluating AI-powered space utilization tools that provide real-time data on how the office is actually being used.
Nearly all companies surveyed by EY anticipate integrating AI and machine learning into their space utilization planning. This isn’t a future aspiration. It’s a current procurement requirement. Buildings that can’t support this technology layer are falling off shortlists.
The Brand Statement Is Back
For two years, the conversation about office space was dominated by cost reduction and right-sizing. That conversation hasn’t disappeared, but it has been joined by a resurgent focus on what the office communicates.
CEOs are once again viewing the physical workspace as an extension of company culture and brand. Not in the superficial sense of logos on walls, but in the deeper sense of whether the space reflects the values the company espouses. A company that talks about innovation should occupy a space that feels innovative. A company that talks about employee wellbeing should occupy a space that demonstrates investment in it.
This is particularly acute in recruiting. In a market where 70% of companies are looking to add space, the office becomes a talent acquisition tool. Candidates visit. They notice. A tired, dated office in a forgettable building tells a story, whether the CEO intends it or not.
What This Means for Occupiers
The office market in February 2026 presents a genuine window of opportunity for occupiers who move strategically. Vacancy is declining but still elevated. New supply is at a 25-year low. Landlords of Class A buildings have been competing aggressively for quality tenants with strong concession packages. But the best spaces are quickly tightening. Average trophy office occupancy in top markets already exceeds 95%.
If you’re a CEO or CRE executive evaluating office space in 2026, the priorities are clear: location that reduces friction, hospitality-grade amenities, physical and lease flexibility, seamless technology, sustainability credentials, and a space that tells the story you want told about your company.
The mediocre office is what died during the pandemic. The best office, the one that earns the commute, supports the work, and reflects the brand, is more valuable than ever.
Coy Davidson is a Senior Vice President at Colliers in Houston, specializing in tenant representation for occupiers of office and healthcare real estate.
