Tech Companies Could Boost Office Rents In These 3 Markets
Unemployment is at its lowest level in nearly two decades, but while the economy has been booming, the office sector has been slow to pick up on these gains.
In part, this is due to the fact that many of the 200,000 jobs added in January were in the construction, food services, healthcare and manufacturing sectors rather than jobs that would traditionally require office space, Forbes reports.
One office-occupying sector that is expanding is technology. It has contributed to an estimated 20% of office-leasing activity in the past several years. These three cities top the list for the largest anticipated growth in technology hiring and office rent over the next year, according to Forbes:
New York City
Known as a hotspot for media companies such as Vice Media and Buzzfeed, and tech companies like Google, Uber and Twitter, the city is ripe for growth, especially with new projects like Hudson Yards — which touts the live-work-play dynamic that appeals to tech companies — underway and coming online in the next few years.
The city has been an anticipated winner of Amazon’s HQ2 for some time, and there are several reasons why. Its strong tech community, which includes companies like SalesLoft, and postsecondary institutions that provide top talent are a draw for both Amazon and a number of other tech companies looking for office space.
The city is home to a massive tech boom and between 2011 and 2016, its tech employment grew by 17.4%, according to Forbes. Similarly, its talent market has grown substantially and according to CBRE, increased 77% in the last five years. This could be attributed to the number of millennials drawn to the area as of late. In a 2016 report, Charlotte was ranked No. 1 for experiencing the most growth of residents 18 to 34 years old in the country.