The 100 Largest US Office Leases Got Even Larger in 2024, Providing an Early Sign of Stabilization of the Market

Large office users signed bigger leases in 2024 compared to the previous year, indicating a potential shift to stabilization and expansion by office occupiers after several years of contraction due to hybrid work, according to a new report from CBRE.

CBRE’s analysis of the 100 largest office leases revealed that their average size rose to 288,834 sq. ft. in 2024, an 8% increase from 2023. The average had been declining since 2020 except for an isolated increase in 2021.

A similar trend was seen in overall U.S. office leasing, where the average size of newly signed office leases increased slightly last year to 29,774 sq. ft. after four years of declines. CBRE tracks leases of 10,000 sq. ft. or larger.

“The 100 largest office leases of 2024 underscore our view that more companies are done shrinking their office footprints to match new office attendance patterns,” said Whitley Collins, CBRE’s Global President of Occupier Advisory & Transaction Services. “Some likely found they actually need more office space than they assumed and therefore must backtrack. Others are expanding their headcount as the economy gradually recovers.”

Tech Rebound

The tech industry accounted for 29 of the largest leases of 2024 up from just 11 in 2023. That vaulted tech ahead of the finance and insurance sector, which logged 15 larges leases, and the business and professional services sector, which notched 13.

The tech industry increased its overall office leasing last year, partly due to the growth in artificial intelligence. Tech’s activity across all leases larger than 10,000 sq. ft. topped all other sectors in Q4.

“Tech’s office-leasing activity rebounded strongly in 2024, but it’s still below its prepandemic level,” said Jessica Morin, CBRE’s Americas Head of Office Research. “That’s the case for the aggregate amount of office leasing in the U.S., too.”

Renewals on the Rise

More companies signing mega leases opted to stay put last year rather than relocate. Sixty-eight of the largest 100 leases were renewals, up from 58 in 2023 and 44 at the recent low point in 2021.

Two influences likely contributed to the rise in renewals. First, staying put is less expensive than relocating and outfitting and designing that new space.

Second, a slowdown in office construction in recent years has limited the availability of large blocks of high-quality office space in certain markets, making it harder and more expensive for companies to find better locations.

NYC, DC Lead in Share of Top Leases

On the market level, Manhattan led all markets by a wide margin for share of the largest 100 leases than other regions.

Top 10 Cities by Share of Largest 100 Office Leases of 2024