The Tech-30 compiles data related to the intersection of the Tech Industry and Real Estate Markets in larger metros. Key Questions asked are the following:
- How is the Tech Industry Performing?
- Which are the Highest Growth Tech Cities?
- Which are the Momentum Markets for High-tech Industry Jobs?
- Which Tech Submarkets Offer Rent Premiums/Discounts?
Key Takeaways: On Linkages Between Tech and Real Estate
San Francisco led high-tech job growth with 39% increase year-over-year. Charlotte increased by 32%, Pittsburgh increased by 31%, and Indianapolis increased by 28%.
High-tech software/services industry created 1.1 million jobs since 2010 at 6% annual growth rate.
Montreal, Pittsburgh, and Los Angeles has higher tech industry growth rates than two years ago.
Aggregate rent premium of 16% in tech-sector property markets. Highest premiums include: East Cambridge – 120%, Santa Monica – 92%, Palo Alto – 71%. Rent discounts were highest in the following areas: Hillsboro – 18%, Northeast Charlotte – 18%, Rent/Herndon – 17%.
City Tech Profiles
Thirty cities are given profile pages in the report. Among the states included on each profile page are:
- Average Asking Rent
- Vacancy Rate
- New Supply
- Top Tech Submarket
- Employment Clustering
- Educational Attainment
- Labor Cost (MSA)
- Significant Office Deals
- High-Tech Software/Services vs. Office-using Jobs
- Net Absorption Growth
- Rent Growth
- High-Tech Software/Services Job and Office Rent Growth
Tech in the Larger Metros
The tech-fueled growth of local real estate markets occurs across a number of dimensions that include commercial and residential real estate. Tech is larger driving migration as job seekers relocate first to University then upon graduation to larger metros with high tech industry concentration.
The authors of CBRE’s Tech-30 report, include a helpful diagram to illustrate the maturity of the local real estate markets in the tech-heavy 30 metros. As markets reach maturity in the top-30, will other metros step up to create tech clusters?
For more information, please contact CBRE’s Director of Research and Analysis.
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