CBRE's Colin Yasukochi says San Francisco is an ideal place to develop and test its market potential.
SAN FRANCISCO—A new CBRE report ranks San Francisco the fastest-growing tech market with overall rent growth of 17.5% between second quarters 2017 and 2019. The company's annual Tech 30 report measures the tech industry's impact on office rents in the 30 leading technology markets in the US and Canada.
"The North American tech industry has diversified its economic base as it has grown, expanding its presence in many Tech 30 markets," said Colin Yasukochi, executive director of research for CBRE's Tech and Media Insights Center and co-author of the report. "Meanwhile, large tech companies have been an ongoing source of demand. The 10 most active tech companies leasing office space since 2013 account for 27% of overall tech-industry leasing."
San Francisco also had the second highest high-tech employment growth rate (behind only Vancouver) with 24.7% during 2017 and 2018, accounting for 84.7% of all new office jobs. Since the current expansion started in 2010, the tech industry in San Francisco has more than quadrupled in size to 100,644 tech jobs as of year-end 2018. This growth has fueled the absorption of 15 million square feet of office space, which reduced the vacancy rate to 3.6% and caused rents to spike by 180% to $86 per square foot annually, the highest in North America.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
