US Office Leasing By Tech Sector Falls

USA – CBRE’s annual Tech-30 report showed that the leasing of office space by the tech industry declined during the first six months of the year and reached the lowest market share in half a decade, reported Connect CRE on Friday morning (4 November, SGT).

In H1 2022, the tech sector made up 16 percent of the office leaving in the United State compared to 21 percent last year when its market share was the highest of any office-using industry. The decline in office leasing by the tech sector indicates that the industry is also being impacted by the prevailing economic conditions.

Consequently, office leasing activity by the tech sector is currently tied with two other industries, namely finance and insurance as well as professional and business services.

In spite of the weaker office leasing by major tech firms, over 66 percent of the top 30 tech markets in North America recorded office rental growth in the past two years. In addition, six of the 30 markets registered positive net absorption – Austin, Nashville, Vancouver, Salt Lake City, Silicon Valley, and Raleigh-Durham.

“Even amid challenges of the past two years, the tech industry continues to add jobs and lease office space at a strong pace,” commented Colin Yasukochi, Executive Director at CBRE’s Tech Insights Center.

“Since early 2020, tech has accounted for roughly one of every three office-using jobs created in the US,” he added.