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Puget Sound Tech Industry Grows 3.5M SF, Tech Leasing Volume Doubles
The tech industry added 3.5 million square feet of office space in the Puget Sound area last year, according to a new CBRE report tracking the tech trends influencing the region’s office market. Over the last decade, tech leasing volume has more than doubled, now accounting for 54% of all new office leases.
While large local companies remain the primary driver of tech growth, Bay Area expansions have leased more than six million square feet of Puget Sound tech office space in the last five years.
CBRE’s John R. Miller says, “The Puget Sound is one of the most tech-concentrated markets in America, with the industry fueling much of our local economic growth and shaping the trajectory of our built environment. As we move faster towards a tech-driven economy in the wake of COVID-19, the greater Seattle area is primed to be one of the first places to realize recovery and further industry expansion.”
Other CBRE report findings include:
- The Eastside has skyrocketed in popularity, claiming 60% of tech leasing activity in 2019, up from 21% in 2015
- Tech firms have preleased 60% of all new office construction set to deliver before 2022, and demand far outpaces incoming supply through 2021
- COVID’s impact: Sublease availability and vacancy did increase notably in Q2, up 21% and 23% respectively quarter-over-quarter, yet the vacancy rate is less than 40% of the dot-com era’s peak
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