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 | Jul 25, 2017
Geotechnical solutions prevent building distress due to expansive clay soils
The condition is the most common geologic hazard in the U.S.
Codes and Standards | Jul 24, 2017
Non-union labor gaining ground in New York City
President of contractors’ group says competitive pricing is spurring more open shops.
Codes and Standards | Jul 20, 2017
New tallest tower west of the Mississippi built to stringent seismic standards
L.A.’s new 1,100-foot skyscraper dominates city’s skyline.
Codes and Standards | Jul 20, 2017
Chicago rises to the top of U.S. cities in percentage of LEED or Energy Star office buildings
Certified office buildings reach 66% in windy city.
Codes and Standards | Jul 19, 2017
Economic impacts of climate change will jump over next two decades
Average annual cost to buildings and infrastructure from eastern storms to rise by $7.3 billion.
Codes and Standards | Jul 18, 2017
Energy modeling yields accuracy within 4%, says new study
Results of the study support the usefulness of the practice.
Codes and Standards | Jul 13, 2017
Net Zero Energy rebranded as ‘Zero Energy’
ILF aims to make new certification the sole standard for highest performing buildings.
Codes and Standards | Jul 13, 2017
New York City creates $10 million fund to help women- and minority-owned firms win construction contracts
The money is earmarked for up to $500,000 surety bonds per contract.
Codes and Standards | Jul 12, 2017
New International Building Code allows weather-resistive barriers above 40 feet
Danger of propagating flames now deemed negligible.
Codes and Standards | Jul 10, 2017
New mass plywood panel project moves ahead with federal grant
New material is substitute for concrete and steel in multi-story projects.
