CHICAGO—High-tech office users justifiably get a lot of attention from both owners and investors. As recently reported in GlobeSt.com, the sector drove roughly 25% of the leasing activity in the top US metro areas over the past two years. But after several years of intense activity, the sky-high sector is coming back down to earth.
“Between 2012 and 2014, a lot of start-ups, such as Uber, were exploding into these huge companies, but over the past year the tech sector has flattened a bit,” JLL's Amber Schiada, vice president, director of research, Northern California, tells GlobeSt.com. The Chicago-based firm recently released its latest Tech Office Outlook report, which notes a 9.6% dip in second quarter leasing activity from tech users.
“Venture capital firms have started to scrutinize their companies more,” she explains, and are now more likely to question the need to hire additional people or expand the amount of occupied space. But instead of looking at this as a concern, this cautious attitude “is a good thing for the industry. It was getting overheated.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
