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
Codes and Standards | Oct 27, 2021
Texas reforms series of contractor laws
Measures seen as making it easier to do business in the state.
Codes and Standards | Oct 26, 2021
Drownings during Hurricane Ida point out FEMA flood map flaws
Eleven people drowned in New York City in areas marked as low risk.
Codes and Standards | Oct 26, 2021
Dept. of Energy’s REScheck tool updated for the 2021 International Energy Conservation Code
Previous version incorporated 2018 code.
Codes and Standards | Oct 20, 2021
New York City passes overhaul of construction codes
Over 600 major changes along with thousands of smaller updates slated for 2022.
Codes and Standards | Oct 20, 2021
One-quarter of U.S. critical infrastructure at risk of failure due to flooding
Police and fire stations, hospitals, airports, and wastewater treatment facilities face threat.
Codes and Standards | Oct 19, 2021
Pittsburgh enacts first-in-the-nation “Dark Sky Lighting” law
Applies to all city parks, facilities, and streetlights.
Codes and Standards | Oct 15, 2021
New Calif. law mandates use of lead-free plumbing fixtures
Must meet NSF/ANSI/CAN 61-2020 in 2023.
Codes and Standards | Oct 14, 2021
Building industry leaders urge governments to boost emissions reductions targets
Scores of large AEC firms and organizations sign letter to UN’s COP 26 group.
Codes and Standards | Oct 13, 2021
FEMA’s new flood insurance plan will sharply raise insurance costs for seaside properties
Risk Rating 2.0 will have more accurate assessment of flood risk.
Codes and Standards | Oct 12, 2021
Three new laws expected to spur more affordable housing in California
Trio of measures could aid carbon reduction in built environment.
