Tech has been a good client of commercial real estate, even during current uncertain times. Take Google as an example: closing on a $2.1 billion deal for St. John's Terminal in New York in April of this year, leasing 300,000 square feet of office in San Francisco in July, and announcing the deal to buy the Thompson Center in Chicago in August.
Now there's an example of spreading the wealth.
But good times don't last forever. CBRE's 11th annual Tech-30 report noted that the wild growth is gone. "U.S. leasing activity by the tech industry has stabilized but remains 35% below pre-pandemic levels," the report said. "Sublease space across the Tech-30 is elevated at 3.8% of available space. Rents in 23 markets were higher in Q2 2022 than two years ago. Only six Tech-30 markets overall and eight submarkets recorded positive net absorption over the past two years."
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