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
| Apr 2, 2013
6 lobby design tips
If you do hotels, schools, student unions, office buildings, performing arts centers, transportation facilities, or any structure with a lobby, here are six principles from healthcare lobby design that make for happier users—and more satisfied owners.
| Mar 29, 2013
PBS broadcast to highlight '10 Buildings That Changed America'
WTTW Chicago, in partnership with the Society of Architectural Historians, has produced "10 Builidngs That Changed America," a TV show set to air May 12 on PBS.
| Mar 29, 2013
Shenzhen projects halted as Chinese officials find substandard concrete
Construction on multiple projects in Guangdong Province—including the 660-m Ping'an Finance Center—has been halted after inspectors in Shenzhen, China, have found at least 15 local plants producing concrete with unprocessed sea sand, which undermines building stabity.
| Mar 15, 2013
7 most endangered buildings in Chicago
The Chicago Preservation Society released its annual list of the buildings at high risk for demolition.
| Mar 14, 2013
25 cities with the most Energy Star certified buildings
Los Angeles, Washington, D.C., and Chicago top EPA's list of the U.S. cities with the greatest number of Energy Star certified buildings in 2012.
| Mar 13, 2013
RSMeans cost comparisons: jails, courthouses, police stations, and post offices
The March 2013 report from RSMeans offers construction costs per square foot for four building types across 25 metro markets. Building types include: jails, courthouses, police stations, and post offices.
| Mar 12, 2013
'World's greenest' office building seeks tenants in Seattle
Superefficient Seattle office building is designed to meet the ambitious goals of the Living Building Challenge.
| Mar 4, 2013
Korean Air, AC Martin collaborating on Western region's tallest tower
The 1,100-foot Wilshire Grand will combine retail and restaurant space, offices, and a luxury hotel in the sky.
| Mar 3, 2013
Hines acquires Archstone's interest in $700 million CityCenterDC project
The Washington D.C. office of Hines, the international real estate firm, announced the acquisition of the ownership interest of their partner, Archstone, in the mixed-use CityCenterDC project that is currently under construction in downtown Washington, D.C.
| Feb 28, 2013
Greeening Silicon Valley: Samsung's new 1.1 million-sf HQ
Samsung Electronics' new 1.1 million sf San Jose campus will support at least 2,500 sales and R&D staff in the company's semiconductor and display businesses.
