The end of 2021 shaped up to be positive for the US office market. In spite of the on-going pandemic, leasing activity rose by 9.2% in the 4th quarter, bringing it 14.6% above 2020 rates. JLL’s Q4 report highlights leading activity in southern markets such as Atlanta, Austin, Dallas and Miami, noting however, that larger cities continued to lag.
Leases for large commercial assets over 100,000 sq. ft grew by almost 50% and represented 44% of total activity. Deals longer than 10 years also rose for four consecutive quarters to approximately eight years on average. The report notes the exceptional performance of new buildings delivered since 2015, a strong indicator that occupiers value the quality of newly constructed offices.