A recent report from Cushman & Wakefield shows that there are three key reasons for the ongoing office recovery seen in the U.S.
Office job growth, long-term leases, and leasing activity are the indicators that have led the commercial real estate firm to feel optimistic about the future of the office industry.
Research has indicated that the pandemic caused one of the worst recessions for the office sector, with the U.S. cutting 171 million square feet of space since the start of the health crisis.
However, Cushman & Wakefield’s report shows that the worst of this impact is nearly over, despite some analysts stating otherwise.
For instance, while 2.9 million office jobs had been lost between March and April of 2020, around 2.2 million of those positions have been recovered as of July of this year.
Additionally, the report found that over 75% of new leases signed during the first half of 2021 have been long-term, or for more than four years.
Leasing activity was also noted to have improved during the second quarter, with totals up 18% compared to the first quarter of 2021 and up 28% from the same time in 2020.