Seven out of 10 tenants predict they will be looking for more space, according to a recent survey by the Visual Lease Data Institute. Close to half of the tenants (48 percent) said at least some of the expansion will come in existing spaces, higher than the 41 percent landlords are anticipating.
In signing new leases during the coming year, close to two out of five tenants said they will be preferring longer occupancy terms. Fifty-eight percent of tenants are prioritizing leases of at least five years in length, with nearly 20 percent interested in 10 or more years of occupancy.
These insights spread good news for CRE and retail. Landlords in large cities are expecting a resurgence in both brick-and-mortar spaces and population rates.
“Increased interest in urban areas suggests many companies are considering how they will set up physical office spaces amid hybrid working conditions and whether they will be available to employees full-time or part-time,” said the report.
“The US economy remains relatively attractive for real estate, especially in contrast with the period immediately following the global economic downturn in 2008/9,” said Ed Walter, ULI’s Global CEO.
Source: Tenants Increase Space – GlobeSt.
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