Hiring of technicians a bright spot for Denver office market, report says
Tech companies have been busy hiring metro Denver, even during the pandemic.
Denver’s growing tech industry continued to add jobs between 2019 and 2021, with a net gain of 3.2% over the two-year period, even as other sectors felt the effects of the pandemic, according to a new report by Cushman & Wakefield.
The tech sector was one of the few to post a net job gain over the past two tumultuous years, when overall office employment fell 2.7%, according to the Tech Sector report. : A Growth Story In Denver’s Still Recovering Office Market.
“The Covid-19 pandemic has caused more talent to disperse into secondary markets, with talent and tech companies gravitating to cities like Denver for its affordability, high quality of life and workforce. highly skilled,” the report said.
The tech industry employed 123,650 people in the Denver metro area in 2021, an increase of 3,900 from 2019. Over the past 10 years, the industry added 42,600 jobs, an increase of 52, 5%.
Tech companies are among the most common newcomers to the Denver metro area, with Silicon Valley-based companies choosing to establish satellite offices in the area or relocate their headquarters here entirely. Among these most prominent companies is Palantir, a security company that moved its headquarters from Palo AltoCalifornia, in Denver in the midst of a pandemic, with its CEO citing issues with culture in Silicon Valley.
Drawn by the talent pool — 45% of Metro Denver’s working-age population holds a bachelor’s degree or higher — tech companies account for an ever-growing share of office leasing in the city.
In 2021, technology companies accounted for 20.2% of all office leasing activity in metro Denver, above the five-year average of 16.7%, according to Cushman. Nearly half of the rental took place in downtown Denver and about 27% in Boulder.
But these companies, with deep pockets and select executives, aren’t picking just any office space for their Denver digs. They want the best spaces the city has to offer, with 75% of tech rental activity taking place in Class A buildings and new construction.
Finding workers is the the biggest challenge for most tech companies today, and quality office space is seen as a recruiting tool that can help companies be more competitive.
Cushman’s report expects tech hiring to remain healthy in the near future. The research predicts that technology employment will outpace overall office-using employment by around 1.1% per year on average through 2025.