The US national office vacancy rate dropped 10 basis points from Q1 and fell below 16%, reaching its lowest point in seven years since the recession. Positive tenant growth fueled nearly half of that increased leasing, according to JLL’s Q2 report, which shows 46% of leases signed were corporate expansions.
Investors and landlords alike can breathe a sigh of relief—it seems fears of a slowdown in tech leasing were misplaced. At least for now. The sector was one of the largest drivers of growth this quarter with more than 56% of tech leases over 20,000 square feet representing expansions. And those expansions took place both within and outside of primary tech hubs—a further signal the industry is continuing to expand. Financial institutions were the other sector to take on the most space last quarter, said Julia Georgules, vice president of JLL research.