As high-tech firms lead the return to office, leasing rates hit positive territory
Although the impact of the global pandemic is still being felt in the commercial office space market, many parts of the world are now moving towards living with the COVID-19 rather than operating with strict restrictions, office leasing data shows.
With 5.4 million square feet of net occupancy growth across the US, office leasing rates in the fourth quarter of 2021 were positive for the first time since the onset of the pandemic. Leading the uptick: leasing rates in secondary-growth markets (cities with populations between 1 and 5 million people).
Tech remained the dominant leasing driver through the end of 2021, representing 21% of Q4 activity, according to Jones Lang LaSalle IP (JLL), a commercial real estate and investment management services firm. High-tech firms continued to dominate the office leasing space, adding about 3.3 million square feet of leased office space in the quarter.