Though the pandemic led to reductions in office leasing by financial services firms in gateway markets, a recent report by JLL found a notable leasing resurgence by those firms.
Since 2022, gateway markets—Boston, Chicago, Los Angeles, New York, San Francisco, Seattle, and Washington, D.C.—accounted for nearly 44% of the total space leased by financial services firms. This improvement has resulted in a rebound to pre-pandemic norms. At the pandemic’s peak in 2020 and 2021, the share of financial services leasing in gateway markets fell from 42% in 2019 to 34%.
The occupancy rebound is good news for major financial services hubs that had been experiencing occupancy reductions in offices within urban cores. The improvement appears to have staying power. Financial services companies are prioritizing talent cultivation and innovation, and continue to prize centralized locations in key financial services hubs to maintain a robust talent pipeline and achieve long-term business goals, JLL says.
Demand in growth markets—Atlanta, Austin, Charlotte, Dallas, Denver, Miami, Nashville, Phoenix, Raleigh, and San Diego—remains resilient and accounts for a fifth of overall financial leasing. But near-term growth in those cities is expected to be at a slower pace than the post-pandemic response, as firms maintain expense discipline.
Related Stories
Smart Buildings | Apr 7, 2023
Carnegie Mellon University's research on advanced building sensors provokes heated controversy
A research project to test next-generation building sensors at Carnegie Mellon University provoked intense debate over the privacy implications of widespread deployment of the devices in a new 90,000-sf building. The light-switch-size devices, capable of measuring 12 types of data including motion and sound, were mounted in more than 300 locations throughout the building.
Affordable Housing | Apr 7, 2023
Florida’s affordable housing law expected to fuel multifamily residential projects
Florida Gov. Ron DeSantis recently signed into law affordable housing legislation that includes $711 million for housing programs and tax breaks for developers. The new law will supersede local governments’ zoning, density, and height requirements.
Energy Efficiency | Apr 7, 2023
Department of Energy makes $1 billion available for states, local governments to upgrade building codes
The U.S. Department of Energy is offering funding to help state and local governments upgrade their building codes to boost energy efficiency. The funding will support improved building codes that reduce carbon emissions and improve energy efficiency, according to DOE.
Resiliency | Apr 4, 2023
New bill would limit housing sprawl in fire- and flood-prone areas of California
A new bill in the California Assembly would limit housing sprawl in fire- and flood-prone areas across the state. For the last several decades, new housing has spread to more remote areas of the Golden State.
Sustainability | Apr 4, 2023
ASHRAE releases Building Performance Standards Guide
Building Performance Standards (BPS): A Technical Resource Guide was created to provide a technical basis for policymakers, building owners, practitioners and other stakeholders interested in developing and implementing a BPS policy. The publication is the first in a series of seven guidebooks by ASHRAE on building decarbonization.
Multifamily Housing | Mar 24, 2023
Washington state House passes bill banning single-family zoning
The Washington state House of Representatives recently passed a bill that would legalize duplexes or fourplexes in almost every neighborhood of every city in the state.
Multifamily Housing | Mar 24, 2023
Momentum building for green retrofits in New York City co-ops, condos
Many New York City co-op and condo boards had been resistant to the idea of approving green retrofits and energy-efficiency upgrades, but that reluctance might be in retreat.
Legislation | Mar 24, 2023
New York lawmakers set sights on unsafe lithium-ion batteries used in electric bikes and scooters
Lawmakers in New York City and statewide have moved to quell the growing number of fires caused by lithium-ion batteries used in electric bikes and scooters.
Codes and Standards | Mar 24, 2023
Changes to ICC building codes development process aimed at more in-depth vetting of proposals
The changes will take effect in 2024-2026 for the development of the 2027 International Codes (I-Codes). They will move the development process to an integrated and continuous three-year cycle.
Multifamily Housing | Mar 24, 2023
Multifamily developers offering new car-free projects in car-centric cities
Cities in the South and Southwest have eased zoning rules with parking space mandates in recent years to allow developers to build new housing with less parking.
