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Tech Helps US Office Market Stay Stable

But a construction boom could begin to push up the national vacancy rate, according to Cushman & Wakefield.

By Brian J. Rogal | brianjrogal | Updated on October 12, 2017

San_Jose-Downtown-1 (2) San Jose’s suburb of Santa Clara, a burgeoning tech market, led the nation in absorption during the third quarter.

CHICAGO—The US office market was relatively stable in the third quarter, and in many of the most active cities, the tech sector supplied the fuel, according to a new report from Cushman & Wakefield. Although dozens of markets across the US saw some negative absorption, that was off-set by big gains for top tech cities such as Santa Clara, CA, Brooklyn, Seattle Raleigh/Durham, and San Diego. Each recorded more than one million square feet of positive absorption in the first three quarters of 2017, with Santa Clara reaching nearly 3.4 million.

“We were thinking last year that the tech sector was slowing down a bit, but it came roaring back this year,” Ken McCarthy, C&W’s principal economist, tells GlobeSt.com. “Overall, the tech sector continues to play an important role, both in the national economy, and the real estate market.”

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