Number of 100K-Foot Office Leases Up in 2011—Way Up
On the heels of learning that trophy towers are once more commanding three-figure rents, we learn that big chunks of space, once tut-tutted amid the Great Recession’s layoffs, are getting long looks again by tenants.
Indeed, through May 2011, 21 leasing transactions of more than 100,000 square feet have been completed. That’s compared to only 17 such deals through the first five months of 2010, and only nine during that same period in 2009. The data, provided by Cushman & Wakefield, also shows that, at 279,806 square feet, the average size of transactions totaling more than 100,000 square feet is significantly larger than in the previous two years.
“The trend is indicative of a combination between pent up demand and opportunistic leasing,” said Ken McCarthy, a senior economist with Cushman & Wakefield, which worked on four out of the five largest deals so far this year.
“Large companies that put plans on hold during the recession, as well as large tenants whose lease may not expire for several years, are taking decisive action to secure space while the economics are favorable,” Mr. McCarthy said. “Although there have been some headwinds, we expect solid leasing activity to continue as employment increases.”