U.S. workplace leasing activity, presently trailing pre-pandemic peaks, fell further more in the fourth quarter, according to CoStar knowledge.
The volume of workplace sq. footage leased in the fourth quarter was 14.4% reduced than the third quarter, and 20.3% lessen than the fourth quarter a 12 months before. The variety of leases signed was the cheapest given that the 3rd quarter of 2021.
The yearly quantity of place of work sq. footage signed in 2022 was 23.6% reduce than 2019, the yr in advance of the coronavirus pandemic.
A change ensuing in additional hybrid perform preparations contributed to 24.7 million square toes extra of place of work tenant transfer-outs than shift-ins in 2022, in accordance to a CoStar business industry evaluation, for the 3rd straight year of destructive net absorption. Occupancy nationwide in the fourth quarter was down 2% as opposed to the very first quarter of 2020.
The normal lease measurement in sq. footage shrunk 5% in the fourth quarter from the third quarter soon after escalating in the two prior quarters. The once-a-year regular size of business leases signed in 2022 was 15.2% lessen than in 2019.