Dear Friends-

Office leasing activity is gaining exciting momentum in 2025, and according to research and insights from Frank Ponce and Anna Khomut of the Ponce Real Estate Group, this revival is more than just a trend—it's a positive shift in workplace dynamics and tenant confidence.

After a quieter 2024, leasing volume has soared past 100 million square feet in the first quarter of 2025, signaling a return to pre-2020 levels of engagement. Even as job growth in traditional knowledge sectors like information and professional services has slowed, businesses are showing renewed interest in office footprints.

So, what’s fueling the surge? Frank and Anna have pinpointed a key driver: a meaningful rise in office attendance. Hybrid work has matured, and a growing majority of knowledge workers are now spending at least part of the week onsite. In fact, over 75% now report regular in-office time—up from previous years—according to data interpreted from the Bureau of Labor Statistics by the Ponce Real Estate Group.

This increase in presence means more than full parking lots and buzzing break rooms. It's reinvigorating how companies think about collaboration, space utilization, and long-term strategy. While the overall number of jobs remains slightly below its 2023 peak, the number of workers actively using office space is higher than ever—a key signal of renewed tenant confidence.

Frank and Anna also note that strong leasing isn't only about worker attendance. Healthcare expansions and a flight to quality buildings are also stabilizing demand. But it’s the consistency in hybrid attendance that’s likely giving office occupiers the confidence to commit again.

And the best part? The Ponce Real Estate Group sees even more opportunity ahead. If job growth picks up later this year, it could turbocharge the positive trend, unlocking even greater potential for the office market.

If you're curious how these insights might shape your own real estate decisions, we’d be happy to help explore next steps.

Frank (310) 503-4158, Anna (310) 780-0148.