Hybrid work, a surplus of vacant space, rising TI costs, and shifting tenant expectations have turned the leasing process into a high-friction, high-impact function.

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As we move into 2026, office brokers and leasing managers face a new set of challenges that require sharper tools, deeper data, and faster execution. Below are the top 10 challenges office CRE teams are experiencing right now, along with the real-world impact on performance and revenue.

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1. Leasing Cycles Are Longer Than Ever

The Pain:
Tenants are taking months (and sometimes quarters) to make office decisions. Hybrid work policies, economic uncertainty, and growing stakeholder groups all slow down the process.

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The Impact:

  • Longer time on market
  • Delayed commissions
  • Increased pressure from owners
  • Reduced NOI and slower absorption
  • Buildings struggle to maintain competitiveness

2. Office Spaces All Look the Same Online

The Pain:
 In an oversupplied market, available office suites appear interchangeable. Most listings still rely on low-quality photos, outdated floor plans, or empty-shell tours.

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The Impact:

  • Prospects lose interest early
  • Fewer qualified tours
  • Lower engagement from tenant rep brokers
  • Deals stall before they start
  • Buildings get outshined by competitors with better digital assets

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3. Tenants Have No Idea How Much Space They Need

The Pain:
 Hybrid work has exploded traditional headcount formulas. Tenants are unsure about:

  • Desk ratios
  • Scheduling needs
  • Meeting room requirements
  • Multi-location strategies
  • Future growth or contraction

The Impact:

  • Endless discovery conversations
  • More dead-end leads
  • Greater decision paralysis
  • Higher friction early in the funnel

4. Turnkey Space Demand Is Higher Than Inventory

The Pain:
Tenants increasingly want move-in-ready, furnished, tech-enabled offices. But most buildings don’t have enough plug-and-play space to meet the demand.

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The Impact:

  • Lost deals to buildings that are turnkey
  • Increased TI conversations
  • Longer buildout cycles
  • Higher capital expenditures for owners

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5. Tenant Improvement (TI) Costs Are Out of Control

The Pain:
TI negotiations are one of the biggest deal killers in today’s office market. Construction pricing, labor shortages, and supply chain volatility continue to inflate budgets.

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The Impact:

  • Deals stall in the “TI black hole”
  • Ownership pushes back on concessions
  • Tenants seek cheaper or furnished alternatives
  • Leasing teams spend time chasing contractors instead of closing

6. Leasing Materials Are Outdated or Missing

The Pain:
 Many buildings still rely on:

  • Old BOMA measurements
  • Inaccurate stack plans
  • Outdated suite photos
  • PDFs that don’t reflect recent changes
  • No or limited test fits or layout options

The Impact:

  • Credibility takes a hit
  • Brokers spend time clarifying basic details
  • Prospects lose trust early
  • More back-and-forth with architects
  • Deals slow dramatically

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7. Tours Are Inefficient and Time-Consuming

The Pain:
 Office tours often involve:

  • Long onsite walkthroughs
  • Multiple vacant spaces
  • Repeating the same information
  • Getting all tenant stakeholders present
  • Spaces not being “tour-ready”

The Impact:

  • Low ROI on time spent
  • Tenant fatigue
  • Higher no-show rates
  • More unqualified tours
  • Longer path to meaningful engagement

8. Oversupply Means Cutthroat Competition

The Pain:
 In many markets, office vacancy is still at historic highs. This leads to aggressive pricing and concession wars, especially for Class A buildings competing for a shrinking pool of tenants.

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The Impact:

  • Race to the bottom on pricing
  • Higher TI packages
  • Increased free rent periods
  • Lost deals to more modern buildings
  • Pressure on owners and asset management teams

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9. Complex Stakeholder Alignment Slows Every Deal

The Pain:
 Office leases involve more decision-makers than ever:

  • HR
  • IT
  • CFO
  • COO
  • Legal
  • Department heads
  • Tenant rep broker
  • Owner/Asset manager

Each has different priorities.

The Impact:

  • Slow decision-making
  • More objections
  • Longer negotiation cycles
  • Higher risk of deals falling apart

10. Market Volatility Erodes Tenant Confidence

The Pain:
 Economic uncertainty, fluctuating hybrid models, and organizational restructuring make tenants cautious.

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The Impact:

  • More “wait-and-see” behavior
  • More sublease inventory competing with direct space
  • Tenants hesitant to commit to long terms
  • Higher fallout rate between tour and proposal

How 2026 Will Require Leasing and Broker Teams to Do Different

The leasing landscape is shifting rapidly, and office brokers who thrive in 2026 will be those who:

  • Differentiate their spaces visually
  • Guide tenants through uncertainty
  • Streamline tours and digital experiences
  • Provide clarity on space planning and costs
  • Leverage data and visual tools that shorten decision cycles

The buildings that win will be the ones that reduce friction at every step of the leasing journey from first click to signed lease to successful move-in.  

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AI Will Enable Leasing and Broker Teams

Leasing and broker teams that compete on the same vectors will not get ahead. With market competition and eroding margins, this is a race to the bottom. What teams need is a new approach to leasing challenges. They need to align and showcase potential to capture interest and eliminate uncertainty.

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New technology can accelerate decision making and help win more deals, faster.

Experience how qbiq AI is improving closure rate an speed for leasing and broker teams here.Â