U.S. office leasing trends by industry: a comparative analysis of rental rates and lease terms

Banking, finance, insurance, and real estate tenants continue to average the highest rents in the U.S., driven by their demand for higher-quality space, with an average lease duration of just over seven years.
Law firms—despite the tight gap between base rents and net effective rents—are signing the longest lease terms on average at 94 months, or 7.8 years.
Consulting, research, accounting, and recruiting tenants have the widest gap between base rents and net effective rents of $13 per square foot, likely caused by proportionally large concession packages.
The tech industry is witnessing the shortest lease terms on average at 63 months, or just over five years, due to the sector trending toward shorter term, pre-built spaces—which is also shrinking the gap between base and net effective rents.
Media, PR, telecom, and entertainment tenants have also seen a tight gap between base and net effective rents—like tech—and pay the lowest average base rents in the U.S. across major industries.

June 10, 2024