Prime space is tightening, yet tenants still have room to negotiate. Here is where the leverage sits.
- Prime US office vacancy has fallen to 11.9% and asking rents are up 3.1% to $37.95 per sq ft, the fastest rise since 2016, according to CBRE.
- Tenants still have room to negotiate: the spread between asking and taking rents is 9.9%, above the 8.6% of 2019, and value is moving into allowances and build-out.
- A test fit gives you capacity and cost evidence to back an allowance request before lease terms are fixed.
Prime space is tightening, but CBRE's Q3 data shows tenants still have room to negotiate.
- The gap is still there: The spread between asking and taking rents is 9.9%, still above the 8.6% of 2019, so the headline rent is not the whole price.
- Value is moving into the build-out: Manhattan tenant improvement allowances rose 7.9% year on year to $120.80 per sq ft in September (Avison Young), while average free rent fell 8.6%, according to Commercial Observer. Fit-out cost data turns that into an ask.
- Supply is thin where demand is strongest: Prime vacancy is 11.9% (1.9% in Midtown Manhattan), completions are on track for their lowest annual total since 1990, and Manhattan leasing is up 5.6% year to date. Tenants who arrive with their numbers ready can move faster.
Leverage only turns into terms when the evidence is ready, and a test fit makes it quick to produce.
- Shortlist at the speed the market demands: Upload each shortlisted floor in Lite Mode and apply the same headcount and room programme to all of them. Desk count, efficiency and cost then sit side by side, with laiout Hub giving you one view across every plan.
- Put a number on the allowance gap: Estimated fit-out cost updates live as you edit, using rates you can set to your own market or contractor pricing. Set that against the landlord's offer, and export the data to CSV for your finance model. Landlords usually cover a test fit through the allowance only if the tenant asks, so ask early.
- Share the case on your terms: Shared links need no account and can be limited by email and expiry, with a view history. You choose which stats appear, so you can leave costs out of the landlord's copy. For your CFO, a branded PDF with 3D views and key metrics, plus AI renders for leadership.
Q: Can tenants still negotiate office leases in a tight market?
Yes, though the levers change. With a 9.9% spread between asking and taking rents and allowances still rising, negotiation tends to move from base rent towards allowances, free rent and landlord-built space.
Q: Our landlord has offered $100 per sq ft towards a 20,000 sq ft fit-out: how can a test fit help us ask for more?
Build the layout you actually need and read the estimated fit-out cost per sq ft from the cost breakdown. If the estimate sits above the offer, the gap becomes a specific ask rather than a general request. Allowances vary by building class, with Commercial Observer reporting $103.40 per sq ft for Class B and C and $130.40 for trophy space in Manhattan.
Q: Do I still need a broker or design team if I use a test fit?
Your broker still runs the process and your designers still develop the scheme. A test fit gives both a fast, shared baseline to work from.
The same pressure is visible in Europe, where occupiers are outpacing a tightening office market by moving earlier. Landlords with the best space can be selective, and the tenants who close well are those who arrive with numbers.
Reviewing your own pipeline is worth the time now, particularly any deal where the allowance is still open.
Book a demo with laiout and bring a floor plan to test.
- US prime vacancy is 11.9%, down 250 bps year on year, and asking rents are up 3.1%.
- The asking-taking spread is 9.9%, still above the 8.6% of 2019.
- Manhattan TI allowances rose 7.9% to $120.80 per sq ft while average free rent fell 8.6%.
- Completions are on track for the lowest annual total since 1990.
- Negotiating value is shifting from base rent into allowances and build-out.
- A test fit in minutes gives tenants capacity and cost evidence for that conversation.
- Q3 2026 US Office Market Report, CBRE, 23 October 2026.
- New York office tenant improvement allowances, Commercial Observer, 20 October 2026.
- Manhattan Office Market Q3 2026, Savills, 1 October 2026.
Author: Theodore Harding, laiout
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