Small is the new big

After the pandemic its evident that the average size of office lease transactions is decreasing. Within the Big5 office markets the average size of individual lease transactions decreased to a level just below 500 sqm, coming from almost 1,200 sqm 5 years ago;

Why? The slowdown of the economy pushes back on expansion plans and companies continue to look for quality over quantity;

So what! In 2024 smaller companies are responsible for approx. 40% of take-up, compared to 23% based on the 10-year average. Based on the number of deals smaller companies have become very dominant: almost 90% of all leases in 2024 are smaller than 500 sqm. So landlords need to increase the offering of smaller floorplates!