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
Adaptive Reuse | May 9, 2024
Hotels now account for over one-third of adaptive reuse projects
For the first time ever, hotel to apartment conversion projects have overtaken office-to-residential conversions.
Biophilic Design | May 6, 2024
The benefits of biophilic design in the built environment
Biophilic design in the built environment supports the health and wellbeing of individuals, as they spend most of their time indoors.
Retail Centers | May 3, 2024
Outside Las Vegas, two unused office buildings will be turned into an open-air retail development
In Henderson, Nev., a city roughly 15 miles southeast of Las Vegas, 100,000 sf of unused office space will be turned into an open-air retail development called The Cliff. The $30 million adaptive reuse development will convert the site’s two office buildings into a destination for retail stores, chef-driven restaurants, and community entertainment.
Mixed-Use | Apr 23, 2024
A sports entertainment district is approved for downtown Orlando
This $500 million mixed-use development will take up nearly nine blocks.
AEC Innovators | Apr 15, 2024
3 ways the most innovative companies work differently
Gensler’s pre-pandemic workplace research reinforced that great workplace design drives creativity and innovation. Using six performance indicators, we're able to view workers’ perceptions of the quality of innovation, creativity, and leadership in an employee’s organization.
Laboratories | Apr 15, 2024
HGA unveils plans to transform an abandoned rock quarry into a new research and innovation campus
In the coastal town of Manchester-by-the-Sea, Mass., an abandoned rock quarry will be transformed into a new research and innovation campus designed by HGA. The campus will reuse and upcycle the granite left onsite. The project for Cell Signaling Technology (CST), a life sciences technology company, will turn an environmentally depleted site into a net-zero laboratory campus, with building electrification and onsite renewables.
Mixed-Use | Apr 4, 2024
Sustainable mixed-use districts: Crafting urban communities
As a part of the revitalization of a Seattle neighborhood, Graphite Design Group designed a sustainable mixed-use community that exemplifies resource conversation, transportation synergies, and long-term flexibility.
Office Buildings | Apr 2, 2024
SOM designs pleated façade for Star River Headquarters for optimal daylighting and views
In Guangzhou, China, Skidmore, Owings & Merrill (SOM) has designed the recently completed Star River Headquarters to minimize embodied carbon, reduce energy consumption, and create a healthy work environment. The 48-story tower is located in the business district on Guangzhou’s Pazhou Island.
Adaptive Reuse | Mar 30, 2024
Hotel vs. office: Different challenges in commercial to residential conversions
In the midst of a national housing shortage, developers are examining the viability of commercial to residential conversions as a solution to both problems.
Sustainability | Mar 29, 2024
Demystifying carbon offsets vs direct reductions
Chris Forney, Principal, Brightworks Sustainability, and Rob Atkinson, Senior Project Manager, IA Interior Architects, share the misconceptions about carbon offsets and identify opportunities for realizing a carbon-neutral building portfolio.
