Figures

Midwest Office Figures Q2 2026

Bifurcation between Prime and Commodity Assets Continues to Diverge

August 10, 2026 5 Minute Read

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  • Quarterly net absorption turned positive in the Midwest, recording 737,613 sq. ft. in Q2. Ten Midwest markets posted positive absorption this quarter and four posted negative absorption (Cincinnati, St. Louis, Cleveland and Louisville). Overall vacancy decreased quarter-over-quarter by 9 basis points (bps) to 22.2%.
  • The overall average asking lease rate climbed $0.02 (6 bps) over the prior quarter to $28.87 per sq. ft. in Q2 2026
  • At the close of second quarter the Midwest recorded 1 million sq. ft. of office space under active construction. The limited pipeline signifies the heightened cost of construction and caution by lenders/developers to bring additional product to market.
  • 'The Midwest markets posted 9.16 million sq. ft. of office leasing activity in Q2 2026 a decrease of 2.47 million sq. ft. (21.2%) over Q2 2025.