Office Demand Remains Strong As Tech Companies Penetrate New Markets

Though there were fears that tech companies’ office absorption would decline toward the end of 2015 and into 2016, office demand in tech-saturated cities has remained strong.

Within the past four quarters, 63.4% of tech companies in the US leasing at least 20k SF have remained in growth mode, while only 4.6% of tech companies are shrinking their real estate footprint, according to a recent JLL report.

Corporate expansion and startup growth has been a catalyst in increasing tech office leasing in new markets like Indianapolis, Nashville and New Jersey, CoStar reports. Deals were inked for more than 2.5M SF of leased space to 50 tech companies penetrating new markets within the last four-quarter period ending June 30. [CoStar]

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