Tech companies fuel U.S. office market recovery

Technology companies play a leading role in the recovery of the US office market, as they accounted for 36 of the top 100 office leases in the US in 2021, according to a new CBRE report. The technology sector claimed 11.4 million cumulative square feet of prime leases, or about 37%. This number greatly exceeded leasing activity from other sectors such as government and public administration (5.1 million square feet), finance and insurance (3.6 million square feet) and science. of life (1.8 million square feet).

“The technology sector has played a significant role in the office leasing business in recent years, and it has rebounded in 2021 to rival its pre-pandemic business,” said Manish Kashyap, global president of consulting services. and transaction from CBRE, in a CBRE press release for the report. “Overall, office leasing in the United States grew nearly 27% last year, and several other indicators of market performance turned positive at the end of the year. The tech industry is the big driver there.

CBRE’s report is further proof that commercial office owners should target tech companies as tenants. The tech sector has been one of the biggest, if not the biggest, renters of office space for more than a decade, and the recent report shows that trend isn’t slowing.

Top business brokers advise finding scalable, highly connected spaces that focus on wellness and sustainability and are accessible around the clock to attract tech companies. CBRE says optimism should be tempered with caution even as the pandemic subsides. But an increase in office leasing activity at the end of 2021, fueled by technology, should bode well for the rest of 2022.

Jose C. Birney