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 | Mar 18, 2021
Congressmen ask Biden to tackle rising lumber costs
Rising materials costs and supply shortages threaten economic recovery, housing starts.
Codes and Standards | Mar 16, 2021
Massachusetts bill would mandate rooftop solar on new homes, commercial buildings
Proposed Bay State mandate modeled on California’s.
Codes and Standards | Mar 15, 2021
Nevada may create areas for tech companies to form own governments
Legislation calls for ‘Innovation Zones’ that could become smart cities.
Codes and Standards | Mar 11, 2021
Los Angeles commits to carbon-free city buildings
City will take into account embedded carbon when contracting to buy construction products.
Codes and Standards | Mar 10, 2021
‘Smart retrofitting’ will be crucial to net zero aspirations
AI, analytical software, Internet of Things are keys to decarbonization of built environment.
Codes and Standards | Mar 9, 2021
Salt Lake City is first jurisdiction to adopt new standards for off-site construction
Code Council and Modular Building Institute developing standards and compliance protocols.
Codes and Standards | Mar 8, 2021
Hyperlocal zoning could spur more affordable housing construction
Letting blocks and streets pass their own rules could have impact.
Codes and Standards | Mar 5, 2021
Biden builds on Trump’s “Buy American” order
New administration extends preferences for domestic construction materials.
Codes and Standards | Mar 4, 2021
Biden administration overturns Trump’s federal building design mandate
Previous order promoted classical and “traditional” architecture above others.
Codes and Standards | Mar 3, 2021
Texas freeze raises questions about risks of electrifying buildings
Gas stoves helped residents cook, boil water when power went out.