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.