Research Brief: Office Market – May 2022

Tech hiring reiterates decentralization. Over the past decade, the tech industry expanded beyond the traditional hubs of the Bay Area, Seattle, Los Angeles and New York City into new frontiers in Atlanta, Austin, Denver and Orlando. Firms sought out new talent and planned expansions in lower-cost areas. Despite this, nearly 50 percent of new tech job openings from 2015 to 2019 were still located in high-profile tech metros. During the health crisis, the decentralization of the sector advanced more sharply into even smaller tech markets, including Charlotte, Nashville and San Antonio. Metros with prominent colleges, such as Tucson and Raleigh-Durham, are also reporting increased hiring. Tech firms have driven much of the office-leasing in recent years, and these hiring trends will likely be reflected in vacancy movement upon a return to in-person operations.

 

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