--- title: "Q2 2026 Class A Atlas Office Index — Trophy flight to quality widens the Class A/B spread" description: "The Q2 2026 Class A Atlas Office Index finds rent stabilization across most Tier 1 markets, accelerating trophy demand in APAC core CBDs, and a widening Class A-to-Class B rent gap that is reshaping occupier shortlists." canonical: https://classa.info/research/office-index/reports/2026-q2 pageType: dispatch-issue lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > The Q2 2026 Class A Atlas Office Index finds rent stabilization across most Tier 1 markets, accelerating trophy demand in APAC core CBDs, and a widening Class A-to-Class B rent gap that is reshaping occupier shortlists. ## TL;DR - APAC trophy markets (Singapore, Tokyo, Hong Kong Central) are the tightest in the Index — vacancy on top-tier floors below 4% in all three. - The Class A-to-Class B rent premium has widened to an average of 38% across 20 markets, up from 29% in Q2 2024. - AI company demand is a measurable driver in San Francisco, New York, London, and Singapore — accounting for an estimated 15–22% of new leasing volume in those CBDs. - US Sun Belt markets (Dallas, Houston, Austin) remain the most tenant-favorable large markets — vacancy above 18% with 18–24 months rent-free available on direct Class A. - ESG-certified stock commands a 12–18% rent premium vs non-certified in all eight EMEA markets we track, up from 6–10% in 2023. # Q2 2026 Class A Atlas Office Index — Trophy flight to quality widens the Class A/B spread **The Q2 2026 [Class A](/glossary/class-a) Atlas Office Index finds rent stabilization across most Tier 1 markets, accelerating trophy demand in APAC core CBDs, and a widening Class A-to-[Class B](/glossary/class-b) rent gap that is reshaping occupier shortlists.** ## TL;DR - APAC trophy markets (Singapore, Tokyo, Hong Kong Central) are the tightest in the Index — vacancy on top-tier floors below 4% in all three. - The Class A-to-Class B rent premium has widened to an average of 38% across 20 markets, up from 29% in Q2 2024. - AI company demand is a measurable driver in San Francisco, New York, London, and Singapore — accounting for an estimated 15–22% of new leasing volume in those CBDs. - US Sun Belt markets (Dallas, Houston, Austin) remain the most tenant-favorable large markets — vacancy above 18% with 18–24 months rent-free available on direct Class A. - ESG-certified stock commands a 12–18% rent premium vs non-certified in all eight EMEA markets we track, up from 6–10% in 2023. ## Risers - [Singapore](/cities/singapore) #1 (was #2) — Marina Bay trophy vacancy at 2.8%. Rent-free durations contracting; landlord TI contribution now below $80/sqft. - [Tokyo](/cities/tokyo) #2 (was #4) — Marunouchi/Otemachi vacancy tightest since 2019. Sustained inbound HQ demand from US tech and financial services. - [London](/cities/london) #3 (was #3) — City Core and West End trophy stock both posting <5% vacancy. ESG-certified rent premium now 16% vs non-certified. ## Fallers - [San Francisco](/cities/san-francisco) #11 (was #8) — Overall vacancy still elevated at 28%, but AI-cluster demand in SoMa/Mission is creating a two-speed market within the metro. - [Hong Kong](/cities/hong-kong) #8 (was #6) — Central trophy holdings stable, but overall market vacancy remains above 13% as financial services headcount normalises. ## Trophy flight to quality is the defining story of 2026 The gap between Class A and Class B office has never been wider by our measure. Across the 20 markets in the Class A Atlas Office Index, the median rent premium for certified Class A over comparable Class B stands at 38% as of Q2 2026 — up from 29% in Q2 2024 and 19% in Q2 2022. The post-pandemic barbell is now fully formed: trophy and prime floors in core CBDs are absorbing demand, while non-certified secondary stock is softening across all three regions. Occupiers who locked short lease terms in 2020–2022 expecting further rent corrections in Class A are now facing the opposite dynamic in APAC and EMEA core — a rising market with contracting concession packages. ## APAC: Singapore and Tokyo are leading the next tightening leg Singapore Marina Bay and Tokyo Marunouchi/Otemachi are posting the two tightest trophy-floor vacancy figures in our global coverage at 2.8% and 3.1% respectively. Both markets are absorbing inbound corporate HQ activity at a pace not seen since pre-2020, driven by US and European financial services and technology firms designating APAC anchor offices. The practical implication for occupiers: expect single-digit-month rent-free packages on prime floors, limited landlord TI contribution beyond Category A, and landlord preference for longer terms (7–10 years) over short or break-heavy leases. Shortlisted floors in Raffles Place and Marunouchi are under offer within weeks of availability. Occupiers should carry backup options in Melbourne and Seoul — both of which offer comparable talent depth at materially lower occupancy cost. ## AI demand is reshaping leasing velocity in four cities AI and machine-learning company demand is now a statistically measurable driver of new Class A leasing in San Francisco (SoMa/Mission), New York (Midtown South/Hudson Yards), London (King's Cross/Tech City), and Singapore (one-north/Mapletree). Estimated AI-related leasing as a share of total new-lease volume in these CBDs ranges from 15% to 22% — a share that did not exist as a distinct category two years ago. Notably, AI firms are selecting Class A at a disproportionate rate versus Class B, driven by talent attraction arguments (prestige address for engineering hiring), power-[density](/glossary/density) requirements (some AI infrastructure workloads require dedicated power infrastructure), and proximity to co-investment networks in the same buildings. Class A Atlas expects this demand segment to sustain above-market velocity through at least 2027. ## US Sun Belt: the most tenant-favorable large Class A market in the world Dallas, Houston, and Austin collectively represent the largest pocket of tenant leverage in global Class A leasing. Combined direct vacancy across these three metros exceeds 18% — compared with a global Class A average of 12.4% — and landlords in trophy assets are actively offering 18–24 months rent-free on a 10-year term, [fit-out](/topics/fit-out-capex)">fit-out contributions in the $120–$180/sqft range, and below-market headline rents to drive occupancy. Talent depth scores for these markets are lower than gateway markets but improving materially year-on-year, anchored by corporate relocations from California and the Northeast. For occupiers with flexible location mandates and cost sensitivity, these are the best negotiating conditions in any major Class A market. ## ESG premium: from differentiator to underwriting criterion The Class A Atlas ESG-certified rent premium — the spread between [LEED Platinum](/glossary/leed-platinum)/[BREEAM](/glossary/breeam) Excellent/CASBEE S-rated stock and non-certified Class A in the same submarket — stands at 12–18% across all eight EMEA markets we track as of Q2 2026. In Amsterdam and Paris, where landlords have moved fastest on net-zero lease clauses, the premium exceeds 20% on prime assets. The practical implication is that ESG compliance has moved from a negotiating differentiator to an underwriting criterion: occupiers who sign non-certified leases in EMEA are now carrying [renewal](/topics/lease-renewal-strategy) risk if building certification lapses or the landlord introduces compliance obligations mid-term. Our recommendation: ESG fit-out alignment and building certification should be assessed before HoTs, not at due diligence. ## What to watch in Q3 2026 Three dynamics deserve close attention heading into H2 2026. First, supply pressure in London: 3.8 million sqft of new development is expected to complete in the City and West End through Q4 2026, with pre-leasing rates lower than at equivalent stages of the prior cycle — watch for concession normalisation if speculative space hits the market simultaneously. Second, India acceleration: Bangalore and Delhi-NCR are both posting strong absorption for the third consecutive quarter; occupiers establishing GBS or engineering centres should move shortlists to site selection before the prime submarket windows close. Third, the San Francisco two-speed market: overall vacancy remains high but Class A-specific vacancy in SoMa/Mission is below 9% and tightening — the headline metro number is increasingly misleading for Class A-quality occupiers. ## Markets covered - [singapore](/cities/singapore) - [tokyo](/cities/tokyo) - [london](/cities/london) - [new york](/cities/new-york) - [san francisco](/cities/san-francisco) - [hong kong](/cities/hong-kong) - [amsterdam](/cities/amsterdam) - [paris](/cities/paris) - [dallas](/cities/dallas) - [houston](/cities/houston) - [austin](/cities/austin) - [bangalore](/cities/bangalore) --- Citation: Source: Class A Atlas (https://classa.info/research/office-index/reports/2026-q2), updated 2026-04-15T00:00:00.000Z.