ATLANTA—Fueled by double-digit tech-sector employment growth, Atlanta was among the top markets in the country for rising office rents over the past two years. That's according to CBRE's annual Tech-30 report, which measures the technology industry's impact on office rents in the 30 leading tech markets in the US and Canada.
On the list of 30 markets, Atlanta saw the third greatest office rent growth. Atlanta fell behind only Orange County, CA and Nashville.
“Atlanta's office rents are rising at a faster pace than other markets, vacancy is declining, and new supply additions are underway or on the horizon,” Jeff Keppen, senior vice president at CBRE, tells GlobeSt.com. “We have continuously had success placing tech or creative tenants into some of the most prominent office buildings in Atlanta, including some assets that were challenged previously,”
The influence of tech job creation on office market rent growth is pervasive across the US and Canada, with 13 of the Tech-30 markets posting rent growth of 10% or more between the second quarter 2015 and the second quarter of 2017. Atlanta's high-tech employment grew 12% over 2015 and 2016, with average office asking rents rising 18% to $25.03 from the second quarter of 2015 to the second quarter of 2017.
(Here's why Atlanta's office sales volume has seen a big drop.)
“These tenants are helping to diversify the rent rolls of buildings historically dominated by professional service firms,” Keppen says. “This is leading to higher rents and higher occupancies but more importantly new energy and a culture conducive to attracting talent.”
For the sixth consecutive year, San Francisco was the top Tech-30 market for high-tech job growth. The city's high-tech job base grew by 39.4% over the past two years, while its average asking rent increased by only 7.1%. Charlotte (31.6%), Pittsburgh (31.4$) and Indianapolis (27.8%)—all low-cost markets—had the next highest job growth rates and rent increases of 16.9%, 3.5% and 6.5%, respectively.
Double-digit office rent growth was achieved in 13 markets over the past two years. The growth was led by Orange County (23.3%), Nashville (21.2%), Atlanta (17.6%) Charlotte (16.9%) and Silicon Valley (16.8%).
This office movement isn't limited to suburban areas. Read more.
ATLANTA—Fueled by double-digit tech-sector employment growth, Atlanta was among the top markets in the country for rising office rents over the past two years. That's according to CBRE's annual Tech-30 report, which measures the technology industry's impact on office rents in the 30 leading tech markets in the US and Canada.
On the list of 30 markets, Atlanta saw the third greatest office rent growth. Atlanta fell behind only Orange County, CA and Nashville.
“Atlanta's office rents are rising at a faster pace than other markets, vacancy is declining, and new supply additions are underway or on the horizon,” Jeff Keppen, senior vice president at CBRE, tells GlobeSt.com. “We have continuously had success placing tech or creative tenants into some of the most prominent office buildings in Atlanta, including some assets that were challenged previously,”
The influence of tech job creation on office market rent growth is pervasive across the US and Canada, with 13 of the Tech-30 markets posting rent growth of 10% or more between the second quarter 2015 and the second quarter of 2017. Atlanta's high-tech employment grew 12% over 2015 and 2016, with average office asking rents rising 18% to $25.03 from the second quarter of 2015 to the second quarter of 2017.
(Here's why Atlanta's office sales volume has seen a big drop.)
“These tenants are helping to diversify the rent rolls of buildings historically dominated by professional service firms,” Keppen says. “This is leading to higher rents and higher occupancies but more importantly new energy and a culture conducive to attracting talent.”
For the sixth consecutive year, San Francisco was the top Tech-30 market for high-tech job growth. The city's high-tech job base grew by 39.4% over the past two years, while its average asking rent increased by only 7.1%. Charlotte (31.6%), Pittsburgh (31.4$) and Indianapolis (27.8%)—all low-cost markets—had the next highest job growth rates and rent increases of 16.9%, 3.5% and 6.5%, respectively.
Double-digit office rent growth was achieved in 13 markets over the past two years. The growth was led by Orange County (23.3%), Nashville (21.2%), Atlanta (17.6%) Charlotte (16.9%) and Silicon Valley (16.8%).
This office movement isn't limited to suburban areas. Read more.
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