Office Tenants Are Leasing Much Less Space

Early data shows that office users favored smaller footprints in 2020. The trend supports theories that office demand would shrink in response to widespread remote work policies that sprouted during the pandemic.

Last year, the 100 largest office lease transactions totaled 29 million square feet, 32% lower than in 2019, according to research from CBRE. These deals accounted for 19% of total office leasing activity. Lease renewals accounted for 43% of the top lease transactions. This was increase over renewals in 2019, which is likely due to tenants taking a pausing on office leasing decisions during the pandemic. Overall, office leasing decreased 36% last year.