Report: Tech Growth Pricing Tenants Out of S.F.
A new report from CBRE took a look at rent growth in the top 30 tech cities across the US and Canada, and the Bay Area topped the list. Here's what you need to know.
CBRE director of research Colin Yasukochi says the growing number of high-tech integrated businesses should keep the industry strong in the years ahead. But it's certainly come with a cost. CB's Tech-Thirty report has S.F. ranked No. 1 in rent growth, jumping more than 30% between Q2 of 2013 and Q2 this year. Silicon Valley came in second with about 28% rent growth in the same time period.
But don't just blame the techies, as they're also keeping the markets going. The report states in many leading tech markets, such as Silicon Valley and San Francisco, high-tech companies accounted for 88% and 62%, respectively, of major leasing activity through Q2 2015. Still, rising rents have pushed many firms in the Bay to look at Oakland, as pricing remains much more affordable.