2023 Legal Sector Leasing Trends (May 2023)

Tenants looked away from most Gateway markets following Sun Belt population growth SUN BELT MARKETS I NCREAS I NG SHARE OF LEAS I NG ACT I V I TY

KEY TAKEAWAYS

› The share of leasing occurring in Sun Belt markets increased in 2022. Houston saw its share of leasing rise from 4% to 9%, while Dallas/Ft. Worth rose from a 2% share to 5%. › With 7.4 msf of leasing activity in 2022, the share of leasing occurring outside of the top 10 legal markets increased from 39% to 49%. › However, Gateway markets still make up a significant portion of leasing activity, with nearly a fourth of legal leasing occurring in just three cities: New York, Washington, D.C. and Los Angeles.

Q1-Q4 2022: 14.7 MSF

Q1-Q4 2021: 10.9 MSF

4% 0%

4% 2%

Atlanta Boston Chicago D.C. Metro Dallas Houston Los Angeles New York City Philadelphia San Francisco Other Markets

39%

49%

4%

13%

7%

5%

5.7 MSF OF NEW LEASES 5.2 MSF OF RENEWALS

8.9 MSF OF NEW LEASES 5.8 MSF OF RENEWALS

10%

9%

2% 4%

5%

7%

3%

10%

2%

16%

3% 2%

*Due to rounding, new leases plus renewals may not equal total square footage number.

Source: Cushman & Wakefield Research

Cushman & Wakefield | Legal Sector Advisory Group

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