{"id":1004197960,"date":"2017-11-21T03:59:28","date_gmt":"2017-11-21T11:59:28","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004197960"},"modified":"2022-12-08T20:29:06","modified_gmt":"2022-12-09T04:29:06","slug":"tech-office-users-branch-out","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/tech-office-users-branch-out\/","title":{"rendered":"Tech Office Users Branch Out"},"content":{"rendered":"

By Barbra Murray<\/em><\/p>\n

\"Colin<\/a>

Colin Yasukochi, CBRE<\/p><\/div>\n

Tech companies are willing to dig deep into their pockets for premier space in premier tech submarkets, but the ever-dwindling availability of such accommodations will spur new demand in non-traditional tech neighborhoods, according to CBRE\u2019s new Tech-30 report.<\/p>\n

\u201cThe consistent expansion by tech firms has led to outgrowth from the top tech submarkets into neighboring submarkets and often high-rise CBD submarkets,\u201d<\/em> Colin Yasukochi, director of research and analysis for CBRE Inc. and the report\u2019s author, told Commercial Property Executive<\/em>. \u201cTech firms are adapting well to vertical building and high-density environments that often provide great transportation and amenity options for employees. This is a significant change in recent years from the brick-and-beam buildings and more suburban locations preferred by tech firms.\u201d<\/em><\/p>\n

The leading tech submarket with the least amount of free elbowroom is suburban Boston\u2019s East Cambridge, where the office vacancy rate is just 3.3 percent. Tech neighborhoods in Palo Alto, Calif., and Mount Pleasant\/False Creek in Vancouver, are highly constrained as well, with vacancy rates of 3.7 percent and 4 percent, respectively.<\/p>\n

TECH MARKET GROWTH<\/strong><\/h2>\n

The tech industry is anything but low on job growth. Canadian markets made a good showing in this year\u2019s Tech-30 report, with Toronto, Vancouver and Montreal increasing their tech employment base by double digits, outpacing the U.S. average. However, nowhere is tech-industry job growth more prevalent than in San Francisco. The city\u2019s high-tech job base increased by a whopping 39.4 percent over the last two years, making it the top Tech-30 market for high-tech job growth\u2014again. \u201cOne of the most surprising findings of the report was the continued growth leadership of San Francisco,\u201d<\/em> Yasukochi noted. \u201cIt has been the fastest growing market in terms of tech industry job growth for six consecutive years and shows no signs of relinquishing its position next year given the strong leasing activity by the tech industry during 2017.\u201d<\/em>\u00a0<\/p>\n

San Francisco may be turning heads in job growth, but other metros head the list in office sector rent growth. Thirteen markets recorded double-digit rent growth over the past two years, including Orange County, Calif., where rents rose 23.3 percent. Nashville takes the number-two spot with 21.2 percent rent growth.<\/p>\n

THE New NEIGHBORHOODS<\/strong><\/h2>\n

In addition to San Francisco\u2019s performance, the report produced other results that CBRE researchers hadn\u2019t anticipated, such as the increased growth of lower-cost markets in tandem with the tech industry venturing beyond the usual areas in search of talent. \u201cThis trend has benefitted Charlotte, Pittsburgh, Indianapolis, Phoenix and St. Louis,\u201d<\/em> said Yasukochi. \u201cAnd as the tech industry has moved into original entertainment content creation, significant growth has occurred in the Los Angeles market, which moved up to seventh fastest growing in 2017 from 20th in 2016.\u201d<\/em><\/p>\n

There appears to be no end in sight to the tech industry\u2019s mushrooming presence in the office market<\/a>. As noted in the report, the tech industry has generated 1.1 million jobs since 2010, a rate four times faster than the average U.S. job creation rate. \u201cGiven this growth, the tech industry is the top industry leasing office space, with a 19 percent share of H1 2017 major leasing in the U.S.,\u201d<\/em>\u00a0added Yasukochi.<\/p>\n

Photo courtesy of CBRE<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

With companies vying for the diminishing pool of available office space in North America\u2019s top tech neighborhoods, surrounding submarkets are primed to benefit from the overflow of demand, according to CBRE\u2019s annual Tech-30 report.<\/p>\n","protected":false},"author":969,"featured_media":1004197963,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,23891,21742,21747,21787],"tags":[32789],"class_list":["post-1004197960","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-national","category-latest","category-office","category-technology","tag-cbre"],"acf":[],"yoast_head":"\nTech Office Users Branch Out - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/tech-office-users-branch-out\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tech Office Users Branch Out\" \/>\n<meta property=\"og:description\" content=\"With companies vying for the diminishing pool of available office space in North America\u2019s top tech neighborhoods, surrounding submarkets are primed to benefit from the overflow of demand, according to CBRE\u2019s annual Tech-30 report.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/tech-office-users-branch-out\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2017-11-21T11:59:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-09T04:29:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/11\/Colin-Yasukochi-CBRE.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Barbra Murray\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/\"},\"author\":{\"name\":\"Barbra Murray\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/#\\\/schema\\\/person\\\/d1edda962dd3af55af8a203870f9fc32\"},\"headline\":\"Tech Office Users Branch Out\",\"datePublished\":\"2017-11-21T11:59:28+00:00\",\"dateModified\":\"2022-12-09T04:29:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/\"},\"wordCount\":543,\"image\":{\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/wp-content\\\/uploads\\\/sites\\\/46\\\/2017\\\/11\\\/Colin-Yasukochi-CBRE.jpg\",\"keywords\":[\"CBRE\"],\"articleSection\":[\"Featured\",\"National\",\"News\",\"Office\",\"Technology\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/\",\"url\":\"https:\\\/\\\/www.commercialsearch.com\\\/news\\\/tech-office-users-branch-out\\\/\",\"name\":\"Tech Office Users Branch Out - 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