Lease renewals accounted for 70% of office leasing activity in the US in 2020, a significant uptick from 2019 levels.
A JLL report released this week reveals that most companies are adopting a wait-and-see approach to lease strategies as COVID-19 continues to throw a wrench into planning. Generally, office users have favored smaller footprints over the last year, supporting the idea that demand would shrink in response to WFH and remote work policies.
Pre-pandemic renewals made up around 29% of total office leasing activity. About 43% of renewals in the Q4 were five years or shorter in duration, and weighted-average lease terms are also slipping.
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