Tech Firms Look To New Office Markets To Cut Costs

After decades of spurring hot real estate markets in cities like S.F., Seattle and NYC, the tech sector is cooling off, according to Fitch Ratings, and new potential tech hubs are popping up.

Tech firms are heading to the Midwest and Southwest in the search for lower rents, at a time when markets like S.F. and NYC are host to sky-high prices.

One example is Fremont, CA, where office developers are looking outside of S.F. for new property, National Real Estate Investor reports.

"Because of the growth in Palo Alto, there is movement out of the core and into secondary and tertiary markets, where developers are setting up tech parks,” says Jerry Hoffman, president of Hoffman Strategy Group, an urban retail and integral use consultant. [NREI]

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