Office Leasing Activity Expected to Continue Upward Climb Into …

Sep 19, 2024 · More office leases are being signed today than before the pandemic, and leasing activity is expected to increase later this year and into 2025 as occupiers gain confidence in …

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Office Leasing Expected To Reach 85% Of Pre-pandemic Levels This …

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Apr 22, 2024 · Dive Brief: U.S. office leasing volumes are gradually rebounding, with more tenants returning to the market, but with major occupiers continuing to reduce their office space faster …

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FAQs about Office Leasing Activity Expected to Continue Upward Climb Into … Coupon?

How has leasing activity accelerated in 2024?

Leasing activity has accelerated and exceeded its five-year average for the past two quarters. For the first three quarters of 2024, leasing activity increased by 4% year-over-year to 125.3 million sq. ft. While activity is still less than the 2018-2019 average, the number of leases signed over the past two years is higher. ...

Is a strong tenant pipeline a sign of increased leasing activity?

The strong tenant pipeline is an indicator of increased leasing activity over the next several months. CBRE’s 2024 Americas Office Occupier Sentiment Survey indicates that average office utilization has largely plateaued, with 64% of respondents reporting that their office usage has reached a steady state. ...

Are more occupiers comfortable making long-term leasing decisions?

This suggests that more occupiers will be comfortable making long-term leasing decisions, resulting in a modest improvement in leasing activity. Small occupiers with requirements of less than 20,000 sq. ft. made up 60% of leasing volume by count through Q3 2023 and will continue to account for the bulk of leasing activity. ...

What are the challenges facing the US office leasing market?

The US office leasing market continues to face significant challenges, due to: Historically high vacancy rates. A shift toward smaller office footprints. Increased tenant leverage. Growing uncertainty about the future of office space utilization post-pandemic. ...

How has the US office market recovered in 2024?

The culmination of 2024 marked another key development in the recovery of the U.S. office market—as leasing activity has accelerated over the course of the year, Q4 was the first quarter of positive net absorption since Q4 2021, and just the second quarter of occupancy gain since the onset of the pandemic in 2020. ...

Why did Manhattan lease activity increase in 2024?

Manhattan leasing activity continued to improve throughout 2024, with a notable increase in leasing volume and a decrease in vacancy rates during the second half of the year. This increase is largely attributed to large block leases and increased demand for trophy and Class A office buildings. ...