Commercial real estate check-in: Why office leasing reached its post-pandemic peak

August 22, 2026 - 20:19

The commercial real estate market is showing signs of a genuine turnaround, with office leasing activity reaching its highest point since the pandemic began. That is the takeaway from JLL CEO Christian Ulbrich, who sat down with Yahoo Finance to discuss the current state of the sector. Ulbrich noted that the recent surge in leasing volume is a clear signal that tenants are finally making long-term decisions about their space needs, a shift that had been stalled for years.

However, the recovery is not uniform across the board. Ulbrich pointed out that the demand is heavily concentrated in newer, amenity-rich buildings in prime urban locations. Older, less efficient towers are still struggling to attract tenants, creating a two-tiered market. He explained that companies are using real estate strategically, often to entice workers back to the office, which means they are willing to pay a premium for quality. This flight to quality is reshaping the landscape, with vacancy rates in Class A buildings shrinking while secondary properties remain empty.

Looking ahead, Ulbrich expressed cautious optimism. He believes the worst of the downturn is over, but he also warned that the path to full stabilization will be slow. The key driver now is the return-to-office momentum, which is stronger than it was a year ago, though still not back to pre-2020 levels. For investors, the message is clear: location and building quality matter more than ever, and the market is rewarding those who bet on the best assets.