Office Leasing Activity | FEB 2021
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How has office leasing activity changed during the pandemic?
Lease renewals dominated the office leasing market activity last year with renewals accounting for 70% of it in 2020 vs 29% before COVID.
📌 According to a recent report, about 43% of the renewals in Q4 were 5 years or shorter in duration. Incentives and discounts are also playing a bigger role.
In the hard-hit office market of New York, the gap between where office rent levels are and where they end up after discounts and incentives was up to 28% in Q3 2020 vs 6% in 2008
📌 The 100 largest office leases in 2020 totaled 29 million SF, down 32% YOY. Renewals accounted for 43% of those top transactions.
📌 All industries saw a drop in leasing activity except for business services which went up 7% in average lease size.
These trends are not surprising and are not expected to prevail going into a post-pandemic era. Right now, landlords want to secure tenants and tenants want deals. Below are the highlights.
If you’re in the Tampa area and considering leasing your property, contact me for a consultation. I am a Tampa office broker who specializes in leasing and selling professional and medical office space.
