A new report from CBRE has found technology companies stayed the leader in US office leasing and renewals. This news comes as technology office space take up declined by almost half in the second quarter compared to the year earlier.
According to Colin Yasukochi, executive director of CBRE’s Tech Insights Center, to explain why there is a slowdown in office leasing, and what to expect from the future of leasing.
“Last quarter’s decline in office leasing by tech companies is directly related to government-ordered shelter-in-place restrictions, business uncertainty, and the additional work-from-home flexibility that many tech companies are allowing their employees during the pandemic,” said Yasukochi. “That has led to the delay of many real estate leasing commitments until there is more clarity on growth prospects and any fundamental changes in how we use office space going forward.”
Yasukochi added that while technology companies have listed much of their space for sublease, other companies in the hospitality, retail, and restaurant industries are doing the same. This has particularly impacted the San Francisco area.
Moving forward, Yasukochi believes that technology office leasing will rise in the third quarter, but recovery in leasing may take up to a year to build back up.
