Overall leasing activity increased by 18% in H2 compared to H1 2024 across our dataset, with a wide range of sectors completing deals across international markets. Increasing activity reflects robust demand for high-quality office space as occupiers prioritise vibrant and collaborative environments to attract and retain top talent.

While average prime office occupancy costs increased by 2% in H2 2024, 54% of the tracked deals saw occupiers increase their square footage or venture into new markets – with major transactions reflecting confidence in cities such as New York, London, Delhi and Mumbai. Only 12% of deals involved downsizing, with the remainder either renewing or relocating to a similar size.

Regional transactional analysis

Asia Pacific accounted for 42% of top deals we tracked in the second half of 2024, totalling some 15 million sq ft. Several sizeable deals above 400,000 sq ft in the region contributed to a notable uptick in activity at the premium end of the market, an increase of 51% over the half-year. These large deals include Coupang in Seoul, Square Enix in Tokyo and ByteDance in several of our Chinese markets. Of the deals analysed in Asia Pacific in the second half, 47% included tenants taking more space. Cities such as Delhi and Mumbai, in particular, attracted global occupiers in expansion mode, while Chinese markets saw more domestic deals.

North America represented 35% of overall volume by area in our dataset (13 million sq ft). The region recorded a 6% increase in transacted square footage in H2 2024, largely supported by activity in New York and Chicago. New York, in particular, saw an 80% growth in leasing volume in the second half. A number of sizable deals including Blackstone’s 1 million sq ft expansion of its Manhattan headquarters, the largest leasing deal we recorded last year, helped keep the regional volumes growing in the second half of 2024.

In Europe, deal volumes fell by 3% in the second half, with a number of key cities reporting muted activity. However, Southern European markets, such as Madrid, bucked the trend – recording a strong performance and 31% deal volume growth in the same period.

Leasing activity by sector

Just over half (54%) of the deals in our dataset were either new leases or expansions, reflecting positivity among major occupiers and the resilience of premium office space. Just over a third (33%) of the deals we analysed were for space of the same size, while 13% reflected downsizing.

The technology and media sector was the most active, with half of all deals involving expansion of space or new office openings in H2 2024 – signalling continued optimism within the industry, particularly among AI companies. Notable deals include OpenAI’s new 350,000 sq ft office in San Francisco, the city’s biggest lease in 2024 – and outside the AI sector, Bloomberg’s aforementioned renewal and expansion in New York. Similarly, 52% of financial occupier deals expanded square footage, reflecting increasing confidence across the industry as interest rates stabilise and sentiment improves in many markets.

The legal sector also saw positive dealmaking this period, with 48% of the top deals we analysed involved expansion of space. Notable cross-border deals in New York and London reflect ongoing confidence among global occupiers in these markets, with leading domestic law firms expanding space in Sydney.

Interest in flexible office space remains high globally, with 25% of all deals in our sample involving new business to markets. Flexible office providers have been particularly active in India, with Delhi and Mumbai representing almost three-quarters of overall flex office deals across our dataset. Domestic Indian occupiers make up the majority of these deals; however, WeWork has also strengthened its commitment to Mumbai with an expansion of its co-working space at the end of the year.

Almost all industries saw more of an increase in square footage transacted in H2 2024, compared to the first half of the year. The financial sector posted an impressive 51% uptick, while square footage transacted in professional services and flexible office sectors increased by 24% and 63%, respectively, over the same period.

Government and education, sectors that are particularly significant among the top deals recorded in the EMEA region, saw total transaction volume fall by -20% in the second half – contributing to the region’s slight decline in leasing volumes.

The biggest increase in percentage terms was in engineering (AEC), which saw a 228% increase in leasing volume in the second half of the year. Eight of the 15 transactions involved expansion of space, primarily centred in Asian and American markets. Improving economic sentiment is supporting construction and design orders – and, in turn, the wider industry.

The finance sector has seen a particularly active period, accounting for at least one top 10 deal in all but one of the 35 markets we track. This sector also saw the third largest average transaction size per deal at 125,200 sq ft, behind flexible office space providers and TAMI.

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