CRE Lease Market Data 2026
Benchmarks for asking rents, vacancy rates, TI allowances, free rent norms, and lease term trends across 6 major U.S. markets — updated Q1 2026. Know the market before you negotiate.
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New York City
Asking Rent
$78–$105/SF/yr
TI Allowance
$120–$200/SF
Free Rent
12–18 months
Avg Lease Term
8 yrs
Vacancy
18.4%
Trophy vs. Class B bifurcation extreme. Hudson Yards/Midtown South outperform; Midtown core softens.
Los Angeles
Asking Rent
$42–$58/SF/yr
TI Allowance
$80–$140/SF
Free Rent
10–16 months
Avg Lease Term
7 yrs
Vacancy
22.7%
West LA and El Segundo submarkets outperform. Downtown vacancy exceeds 30%.
Chicago
Asking Rent
$34–$52/SF/yr
TI Allowance
$70–$120/SF
Free Rent
10–15 months
Avg Lease Term
7 yrs
Vacancy
21.3%
Fulton Market remains resilient with 12% vacancy. Loop office struggles at 28%+ vacancy.
Dallas–Fort Worth
Asking Rent
$28–$42/SF/yr
TI Allowance
$65–$100/SF
Free Rent
8–12 months
Avg Lease Term
6 yrs
Vacancy
19.8%
Uptown/Turtle Creek submarket at 14% vacancy. Las Colinas softens. Net absorption slightly positive in Q1 2026.
Atlanta
Asking Rent
$26–$38/SF/yr
TI Allowance
$60–$95/SF
Free Rent
8–12 months
Avg Lease Term
6 yrs
Vacancy
20.6%
Buckhead and Midtown submarkets tighten to 16–17% vacancy. Airport submarket softens.
Seattle
Asking Rent
$38–$54/SF/yr
TI Allowance
$85–$150/SF
Free Rent
10–16 months
Avg Lease Term
7 yrs
Vacancy
23.1%
Tech sector contraction drives elevated sublease availability (30M SF+). Bellevue holds better than Downtown Seattle.
Office Market Comparison — All 6 Markets
Side-by-side view of office market benchmarks across all covered markets.
| Market | Asking Rent | Vacancy | TI Allowance | Free Rent | Avg Term | YoY Trend |
|---|---|---|---|---|---|---|
| New York City | $78–$105/SF/yr | 18.4% | $120–$200/SF | 12–18 months | 8 yrs | ▼ -2.1% YoY |
| Los Angeles | $42–$58/SF/yr | 22.7% | $80–$140/SF | 10–16 months | 7 yrs | ▼ -3.4% YoY |
| Chicago | $34–$52/SF/yr | 21.3% | $70–$120/SF | 10–15 months | 7 yrs | ▼ -1.8% YoY |
| Dallas–Fort Worth | $28–$42/SF/yr | 19.8% | $65–$100/SF | 8–12 months | 6 yrs | ▲ +0.4% YoY |
| Atlanta | $26–$38/SF/yr | 20.6% | $60–$95/SF | 8–12 months | 6 yrs | ▲ +0.8% YoY |
| Seattle | $38–$54/SF/yr | 23.1% | $85–$150/SF | 10–16 months | 7 yrs | ▼ -4.2% YoY |
2026 Market Intelligence Highlights
Office: Tenant's Market
Office vacancy above 20% in most major markets creates the strongest tenant negotiating position in decades. Expect landlords to offer 12–18 months free rent, $100–$200/SF TI allowances, and flexible lease terms. Don't accept initial proposals — countering aggressively is standard practice in 2026 office markets.
Retail: Landlord's Market
Retail vacancy below 7% in most markets means landlords hold significant leverage. Prime corridor rents are at or near historical highs in NYC, LA, and Dallas. Tenants must move quickly on attractive spaces and should focus negotiations on TI allowances and co-tenancy protections rather than base rent reductions.
Industrial: Normalizing
After the 2021–2023 industrial surge, vacancy has risen from sub-3% lows to 5–8% in most markets. Spec supply has caught up with demand in Dallas and LA's Inland Empire. Infill last-mile distribution remains tight. Tenants have more negotiating room than in 2022–2023 but market remains landlord-favorable for premium locations.
Flex/Coworking: Opportunity
Post-WeWork-bankruptcy oversupply pushes flex vacancy to 10–13% in most markets. Creative office and traditional flex represent value opportunities in 2026. Tenants choosing traditional flex leases over coworking memberships get better legal protections and typically lower all-in costs for 5+ year commitments.
How to Use This Data in Your Lease Negotiations
Benchmark Your Rent
Compare the landlord's asking rent to the market range above. If asking rent is above the market range, use these benchmarks to negotiate down. If within range, focus on TI and concessions.
Demand Market-Rate TI
TI allowances in this dashboard reflect what comparable tenants are receiving. If your proposed TI is below the range, present this data to your landlord as justification for a higher allowance.
Negotiate Free Rent
Free rent norms reflect typical market concessions. If you're being offered less than the market norm, ask for more. In tenant-favorable office markets, 12–18 months of free rent is achievable in 2026.
Data Sources & Methodology
Market data reflects Q1 2026 conditions sourced from CBRE, JLL, Cushman & Wakefield, CoStar Group, and Newmark published research reports. Ranges represent 25th–75th percentile market conditions for standard commercial quality space (Class A/B office; neighborhood/community retail centers; bulk/mid-bay industrial; traditional flex/R&D). Individual transactions may vary. This data is for educational and benchmarking purposes only and does not constitute real estate advice. Consult a licensed commercial real estate broker for current market conditions in your specific submarket.
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