Exclusive: Big office renewals outpaced new leases last year
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Most of the biggest U.S. office leases got renewed last year, according to a new report first shared with Axios.
Why it matters: Instead of locking down a new space, many companies are staying put as they continue to adjust to a workweek that's part remote, part in-office.
By the numbers: 58% of the 100 largest office leases by square footage in 2023 were renewals, per the report from CBRE, a commercial real estate firm.
- That's a big shift from 2019, when 68% of the top 100 were new leases and 32% were renewals.
What's happening: Employers around the country are shrinking their office footprints and looking to rein in costs, Axios' Emily Peck reports.
- The 100 largest leases last year totaled 26.8 million square feet, down from 30.4 million square feet in 2022, per the CBRE report.
The big picture: While companies are leasing less space, they're betting higher-quality offices in prime locations will get workers in more often, according to CBRE.
- Three-quarters of the top 100 leases by square footage were in top-rated buildings, per the report.
Between the lines: Newer buildings have seen more move-ins than move-outs since before the pandemic, Jessica Morin, CBRE's director of U.S. office research, tells Axios.
- Companies "are striving for the most efficient use of their space as they adapt to hybrid work, and they're often choosing to do so in the best-quality space," Mike Watts, a president at CBRE, said in a press release.
Zoom in: Manhattan and Silicon Valley led with the most square footage among their large office leases, according to the report.
Go deeper: Tech's grip on largest office leases loosens
