Office Real Estate Market to Exceed $2 Trillion by 2031 with Grade A Properties Holding 56.94% Market Share, Reports Mordor Intelligence

The global office real estate market is gaining momentum, expanding at a CAGR of 4.53% through 2031, led by North America as the largest market, as easing interest rates and asset repricing attract institutional investment, while limited new construction continues to tighten prime office vacancy levels.

Hyderabad, March 24, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence’s latest report, the office real estate market size  is projected to grow from USD 1.64 trillion in 2025 to USD 1.71 trillion in 2026, reaching USD 2.14 trillion by 2031, growing at a CAGR of 4.53%. The market is witnessing a clear divide, with high-quality, ESG-aligned office spaces in key business districts attracting stronger demand from both occupiers and investors, while lower-grade properties continue to struggle with higher vacancies and financial pressure. Workplace strategies are evolving as organizations adapt to hybrid models, with increased focus on healthier work environments, modern amenities, and sustainability standards. At the same time, investors are becoming more selective, favoring premium assets in strategic locations. Limited new construction activity is tightening availability in prime segments, strengthening landlord positioning, while older office assets face growing challenges, further widening the gap across the market. 

Office Real Estate Market Share by Region 

North America remains a significant market for office real estate, supported by strong demand in key urban submarkets known for high-quality office assets. Leading business districts across major U.S. cities continue to attract tenants seeking premium workspaces, while Canadian cities are drawing interest from technology and gaming companies due to favorable talent access and business conditions. However, the region faces mounting financial pressures, particularly for mid-tier properties. Upcoming debt maturities are expected to challenge leveraged asset owners, potentially leading to increased asset sales and further widening the gap between high-performing prime offices and lower-grade buildings. 

The Asia-Pacific region is emerging as the fastest-growing market for office real estate, supported by steady demand across major economic hubs such as China, India, and Japan. Key business districts in China are witnessing renewed leasing activity as global companies expand their presence, while India continues to see strong momentum driven by its leading commercial corridors. In Japan, corporate restructuring and governance reforms are supporting demand for premium office spaces. 

Office Real Estate Market Growth Drivers 

Rising Preference for Premium, Sustainable Workspaces Reshapes Office Demand 

Stricter return-to-office policies across major corporations are driving demand toward high-quality office buildings that enhance the in-person work experience. Tenants are increasingly favoring properties with strong sustainability and wellness certifications, as these spaces offer better environments, improved employee engagement, and alignment with corporate responsibility goals. This shift is encouraging landlords to upgrade assets with modern infrastructure, including advanced air systems, smart lighting, and contactless technologies. As sustainability becomes a core business requirement rather than an added benefit, certified green buildings are gaining a competitive edge. This has led to stronger occupancy levels in prime office locations, while lower-grade properties continue to face higher vacancy rates, reinforcing the growing divide between premium and secondary assets in the market. 

Tech-Driven Demand Accelerates Large-Scale Leasing Activity 

The office real estate market analysis indicates that demand from AI-focused companies and semiconductor firms is becoming a major driver of large office space absorption. These organizations require specialized infrastructure, including high-capacity power systems and advanced connectivity, leading them to prioritize functional, high-performance workspaces over traditional premium locations. This shift is influencing rental trends in key technology hubs, where innovation-led occupiers are increasingly competing for high-quality space. Landlords are responding by upgrading properties to meet these evolving requirements, creating opportunities for assets equipped with advanced technical capabilities. As demand from these sectors continues to expand, office markets located near talent hubs and innovation clusters are expected to see sustained growth in leasing activity. 

Major Segments Highlighted in the Office Real Estate Market Report 

By Building Grade  

• Grade A  

• Grade B  

• Grade C  
   

By Transaction Type  

• Rental  

• Sales  
   
  

By End User  

• Information Technology (IT & ITES)  

• BFSI (Banking, Financial Services and Insurance)  

• Business Consulting & Professional Services  

• Other Services (Retail, Lifescience, Energy, Legal)  
   

By Geography  

• North America  

• United States  

• Canada  

• Mexico  

• South America  

• Brazil  

• Argentina  

• Chile  

• Rest of South America  

• Europe  

• United Kingdom  

• Germany  

• France  

• Italy  

• Spain  

• Netherlands  

• Rest of Europe  

• Middle East and Africa  

• Saudi Arabia  

• United Arab Emirates  

• South Africa  

• Nigeria  

• Rest of Middle East and Africa  

• Asia-Pacific  

• China  

• India  

• Japan  

• South Korea  

• Australia  

• Indonesia  

• Rest of Asia-Pacific 

Says, Jayveer V, Senior Research Manager, Mordor Intelligence, says, “The office real estate market is adjusting to evolving workspace strategies and tenant preferences, with demand patterns remaining selective across locations. Mordor Intelligence combines validated inputs with consistent analytical frameworks, offering a dependable view that compares favorably with less transparent market assessments. 

Overview – Office Real Estate Industry 

Study Period	2020-2031
Market Size in 2026	USD 1.71 Trillion
Market Size Forecast 2031	USD 2.14 Trillion
Industry Expansion	Growing at a CAGR of 4.53% during 2026-2031
Fastest Growing Market for 2026-2031	Asia-Pacific projected to record the fastest growth rate
Segments Covered	By Building Grade, By Transaction Type, By End User and By Geography
Regions Covered	North America, Europe, Asia-Pacific, South America, and Middle East and Africa
Customization Scope	Choose tailored purchase options designed to align precisely with your research requirements.

Office Real Estate Companies: Covers global and market-level overviews, key segment insights, available financial details, strategic developments, product and service offerings, and recent updates 

• CBRE Group Group  

• Jones Lang LaSalle (JLL)  

• Cushman & Wakefield  

• Colliers International  

• Knight Frank  

• Savills   

• Brookfield Properties  

• Boston Properties   

• SL Green Realty  

• Vornado Realty Trust  

• Hines  

• Skanska   

• China Evergrande Group  

• DLF (Delhi Land & Finance)  

• Gecina   

• Derwent London   

• Dexus  

• Mitsubishi Estate  

• Suntec REIT  

• Buckingham Properties 

Get in-depth industry insights on the Office Real Estate Market Research Report: https://www.mordorintelligence.com/industry-reports/office-real-estate-market?utm_source=globenewswire 

Explore related reports from Mordor Intelligence 

Shared Office Spaces Market Size: The shared office spaces market is expected to grow from USD 58.45 billion in 2025 to USD 65.22 billion in 2026, reaching USD 112.83 billion by 2031, at a CAGR of 11.59%. 

Commercial Real Estate Market Share: The commercial real estate market report is segmented by property type, including offices, retail, logistics, and others; by business model, covering sales and rental; by end-user, such as individuals/households, corporates, SMEs, and others; and by region, including North America, South America, Europe, Asia-Pacific, and the Middle East and Africa. Market forecasts are presented in terms of value (USD). 

Residential Real Estate Market Analysis: The residential real estate market remains highly fragmented beyond a limited group of large-scale developers, with regional and local players continuing to drive significant activity within their respective markets. In the United States, leading developers are adopting vertically integrated models that combine land development, financing, and transaction services, enabling greater operational control and improved efficiency. 

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