National + Office | October 28, 2021

Tech Sector Leads Rebound in U.S. Office Demand

The tech industry led a rebound in U.S. office-leasing activity in 2021, fueled by increased hiring and demand for tech products and services, according to CBRE’s annual Tech-30 report. Tech companies claimed a 22% share of leasing for the second and third quarters, up from 17% for all of 2020.

“Over the past year, the tech industry has proven to be a resilient industry that grew throughout the pandemic,” said Colin Yasukochi, executive director of CBRE’s Tech Insights Center. “Many tech companies are, like other industries, embracing hybrid work formats to provide their employees flexibility. But the industry also values the collaborative environment of the physical office and its role in bringing employees together to foster innovation.”

Over two years, four markets posted double-digit percentage gains in rents: Seattle, Charlotte, Vancouver and Austin. Separately, six markets posted gains in net absorption: Charlotte, Raleigh-Durham, Nashville, Salt Lake City, Indianapolis and Phoenix.

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Inside The Story

CBRE’s Yasukochi

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).