Flexible Office for the Evolving Workforce

Leases Are Longer Than Depths of Pandemic Length of new leases down from 2019 peak, but in line with historical average

Lease Lengths Reverting

• Shorter lease terms are still in demand, but that trend has slowly been reversing, more so for new leases than renewals. • New lease terms are approaching the historical average and are currently four months longer, on average, since bottoming in Q1 2021. • Renewal lease lengths have also climbed closer to their historical average of 59 months, but still four months shorter.

Average lease length of Class A leases, in months (4-quarter rolling average)

New Leases

Renewals

New Leases - Historical

Renewals - Historical

90

80

72

70

70

66

59

60

55

50

2011 Q1

2012 Q1

2013 Q1

2014 Q1

2015 Q1

2016 Q1

2017 Q1

2018 Q1

2019 Q1

2020 Q1

2021 Q1

2022 Q1

2023 Q1

Source: Cushman & Wakefield Research