LOS ANGELES—The tech industry continues to claim an increasingly larger of US office leasing activity, according to CBRE's annual Tech-30 report, which measures the tech industry's impact on office rents in the 30 tech markets in the US and Canada. CBRE found that tech companies accounted for 21% of major office-leasing activity in the first half of this year, up from 11% when CBRE began tracking the figures in 2011. 10 markets posted double-digit percentage growth in average rents over this period, led by San Francisco. Overall, rents increased in 28 of the Tech-30 markets since 2017. The top ten markets are San Francisco, Portland, OR, Silicon Valley, Charlotte, Atlanta, Seattle, Boston, Nashville, Los Angeles and Raleigh-Durham. CBRE also identified a list of cities that are likely to be the next tech hubs. These cities—the next 10 markets to watch—were selected based on the amount and concentration of tech industry employment and for their relatively affordable cost of doing business, according to Colin Yasukochi, executive director for research for CBRE's Tech and Media Practice. "These markets are considered budding tech hubs that are poised to grow more rapidly in the future," he tells GlobeSt.com. "With further investment in talent generating institutions such as universities and research centers, more tech employers will be attracted to these markets that will over time could become more established tech hubs. Of the 10 markets, the larger (by number of tech jobs) and more concentrated (tech jobs as a % of jobs requiring office space) are closer to making the transition to being on the tech map." Keep an eye on Ottawa, Waterloo and Kansas City, he concludes. Check out our slideshow for more information about these cities to watch.
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