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Tech Sector’s Share of U.S Office Leasing Slips in H1
The tech industry’s U.S. office-leasing activity slipped in the first half of 2022 to its lowest market share in five years, according to CBRE’s annual Tech-30 report. The decline underscores that the industry isn’t immune to the current economic cycle.
The tech sector accounted for 16% of total office leasing activity in H1, down from 21% in 2021, the highest of any office-using sector. It’s now tied with two other sectors: finance & insurance and professional & business services.
Despite large tech companies’ recent pullback in leasing, over the past two years more than two-thirds of the top 30 North American tech markets registered office-rent growth. Six Tech-30 markets experienced positive net absorption: Silicon Valley, Raleigh-Durham, Nashville, Vancouver, Austin and Salt Lake City.
“Even amid challenges of the past two years, the tech industry continues to add jobs and lease office space at a strong pace,” said Colin Yasukochi, executive director of CBRE’s Tech Insights Center. “Since early 2020, tech has accounted for roughly one of every three office-using jobs created in the U.S.”
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