Austin Narrowly Edging Out Bay Area for Office Jobs in 2020
While the Bay Area led the nation in office-using services job growth at 5.2% in 2019, it will likely rank second in 2020 at 2.5%, edged out slightly by Austin’s 2.6% growth, according to a CBRE report.
AUSTIN, TX—While the Bay Area led the nation in office-using services job growth in 2019, it will likely rank second in 2020, edged out slightly by Austin’s 2.6% growth, according to a new report from CBRE. Across the board, tech hubs, business-friendly Texas cities and high-growth southeastern metro areas top the ranks of US markets set for quick expansion of office-using services jobs in the coming years.
“US consumer confidence and spending remain healthy, supported by a strong stock market and high home values, which underpins most US economic expansion and job growth,” said Ian Anderson, CBRE Americas head of office research. “Due at least partly to that, we should see another year of strong office demand and growing rents in many US markets.”
CBRE analyzed the forecasts of its CBRE Econometric Advisors unit to identify which markets are expected to generate the largest percentage growth in office-using services jobs–such as tech, professional and business services, legal, and others–this year. It found that job growth in tech markets continues to defy high costs and tight labor supplies.
Meanwhile, the relatively lower cost of living and business-friendly approach of Texas and various southeastern cities such as Austin continue to stoke job gains.
“Texas’ business-friendly climate and affordability are certainly two of the major reasons for Austin’s growth,” Anderson tells GlobeSt.com. “But coincident with these reasons are the tech industry’s deep and growing presence in Austin that is making job growth so particularly strong. Beyond that, the historic educational presence in the city has created a very attractive labor force that has incidentally helped nurture a unique and vibrant cultural scene that continues to attract people from around the country to relocate to Austin.”
Office-using services jobs are projected to grow 2.5% in San Francisco in 2020, after its dominant pace of 5.2% last year. This would add an additional 6,800 office workers that would occupy 1.2 million square feet, some of which will be occupying new office buildings coming to market 100% preleased this year.
“Technology has been the catalyst for office-using job growth and overall real estate demand in San Francisco. The rapid growth has fueled office rent growth as well as new office development,” said Lexi Russell, director of research and analysis with CBRE in San Francisco.