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Office Lease Sizes Decline 100k SF in 2020
The average size of office leases in the largest 100 declined to 290,000 square feet in 2020 from 422,000 a year prior, according to a recent CBRE report. As it has for the past several years, the technology industry claimed the largest share by square footage (roughly 24 percent) of the largest 100 leases last year.
Tech kept its lead even as the industry’s office leasing activity declined by more than half from 2019. Claiming the second-largest share was the government and nonprofit sector (16 percent), followed by the legal industry in third.
“The competition for tenants in the Houston market will remain fierce in the coming year – with landlords competing for a smaller tenant base that requires greater flexibility, quality, reliability, safety, and amenities for its business and employees,” said Kevin Kushner, executive vice president at CBRE in Houston. “More companies will make long-term real estate decisions this year compared to 2020, but those tenants will demand and achieve increasingly attractive transaction terms.”
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