Do certain office-using industries across the U.S. commit to longer lease terms than others?

graph of average lease term lengths of office-using industry and transaction type in the U.S.
  • In 2023, length of lease terms for office buildings in the U.S. averaged 74 months for new leases/relocations and 60 months for renewals. The influence of sublease space and the growing demand for flexibility has led to term lengths falling below historical averages.
  • When broken out by industry, government leases experienced the longest lease terms, with an average of 118 months—just under 10 years—for new leases and relocations. In contrast, tech leases averaged a considerably shorter 53 months for new leases.
  • The disparity in average length of lease terms across sectors is attributed to each industry's unique needs and its capacity to adapt. Relocations generally resulted in higher lease terms for nearly every sector, with education being the largest exception.

February 26, 2024

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