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.