Traditionally, the tech sector was a primary source of growth for the office asset class and as recently as the fourth quarter of 2021, spaces exceeding 20,000 square feet comprised an average of 21.5% of demand. 

But in the first quarter of this year, leasing for the tech category represented only 8.7% of demand, according to a report by Savills, and not surprisingly the drop-off in demand has left a huge hole in the office market.

This is how bad it has gotten: in the first quarter tech there were no leases over 20,000 square feet signed in Atlanta, Denver, Los Angeles and Austin. Meanwhile another key tech hub, Boston, struck only one deal in that size threshold.