Major Markets Are Milking Tech Dry

If you’re looking for space in the hottest North American tech markets, you’ll be paying an aggregate rent premium of 11% or much, much more, CBRE said Tuesday. The crown goes to East Cambridge, MA, with a whopping rent premium of 87%, trailed closely by Santa Monica’s 85% and 73% for Silicon Valley (pictured), which is home to Google's headquarters. But there's still hope for bargain hunters, as you can find below average rates in Reston/Herndon, VA, the DC metro area, St. Louis’ CBD and Northeast Charlotte, NC. But you better get in soon, as those areas are seeing strong rent growth as tech submarkets have emerged. Tech has created 730,000 jobs since 2009 and has been the top driver of demand through Q2 ’15 with more than 20% leasing activity. In major markets, such as San Francisco, Seattle and Austin, tech centers can account for 60% or more of major leasing. Still, CBRE warns investors to keep expectations grounded: the tech market has historically been volatile. [GS]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Office Revenues Are Failing To Keep Pace With Expenses

HPP, Blackstone Nab Extension On $1.1B Loan Tied To 2.2M SF Hollywood Portfolio

BMO Executive Named New CEO At CREFC

Traders Bet On A Rate Hike From The Fed After Inflation Report Climbs Higher

Why The Next Generation Of Data Centers Will Require More Battery Options

Former CBRE Exec Suing Brokerage Giant Over Age Discrimination, Whistleblower Complaint

Limekiln Sells Stake In Multifamily Lender MF1 To Berkshire Residential

D.C. Investor Behind The Stacks Swaps CEO For First Time In 25 Years

Starbucks Spending $1B To Turn Cafés Into Community Lounges

Stephen Curry Sells Planned HQ Site Near Warriors' Arena

Data Center Demand Has Made IOS An Institutional Capital Playground

Healey's New Data Center Rules Make Massachusetts A Tough Sell For Developers