The tech industry continues to greatly influence office markets despite slowing job growth. CBRE’s 2022 Tech-30 report closely examines the impact on current and future market fundamentals across key markets in the U.S. and Canada.
Key Takeaways:
• Tech industry job growth has slowed but remains well above the national average. Economic headwinds in the year ahead likely will further hamper but not end high-tech job growth.
• Two Canadian markets had the most high-tech job growth in 2020 and 2021 combined, followed by Austin in the U.S.
• Thirteen markets had faster high-tech job growth in the past two years than in the prior two years, led by Toronto and Montreal in Canada and Minneapolis and Raleigh-Durham in the U.S.
• U.S. leasing activity by the tech industry has stabilized but remains 35% below pre-pandemic levels. Sublease space across the Tech-30 is elevated at 3.8% of available space. Rents in 23 markets were higher in Q2 2022 than two years ago.
• These markets have the best combination of future tech demand drivers and office market fundamentals: Vancouver, Silicon Valley, Boston, Raleigh-Durham and San Diego.