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11/11/16
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With a 47 percent growth rate from 2013 to 2015, San Francisco created more than 22,000 high-tech jobs and was the top tech growth market on CBRE’s annual Tech-Thirty report. Silicon Valley ranked first for total new high-tech job creation by adding nearly 28,000 during the same time period. The Tech-Thirty analyzes the 30 leading technology markets in the U.S. and Canada in terms of high-tech software/services job growth.
During 2016, the pace of job creation slowed from rapid to brisk amid tightening of venture capital and equity markets. This caused a pause in growth and resulted in increased sublease space. However, by mid-year, growth resumed with increased demand drawing down the amount of available sublease space and keeping rents steady among these top tech markets.
Tech-related office leasing accounted for 20 percent of all office leasing in the U.S. in the first half of 2016, up from 18 percent in 2015, despite an overall slowing in tech job creation. Tech office leasing in San Francisco accounted for 54 percent of all leasing activity through the first half of 2016.
CBRE’s report showed that the hottest tech submarkets where tech job creation continues to boom—led by East Cambridge, Palo Alto and Santa Monica—are significantly outperforming their overall markets in terms of leasing activity and rent premiums, fueled primarily by the demand for highly-skilled tech talent.
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