Tech-30 2023

Tech industry job growth has slowed but not stopped. It remains well above the national average and fewer layoffs may be a precursor to renewed growth. The tech industry’s near-term rebound should bolster Tech-30 office markets. The long-term growth prospects of the technology industry and, therefore, the Tech-30 markets, remain strong as global economies digitally transform.

Key takeaways:

1. Vancouver and Austin led North America for high-tech job growth in 2021 and 2022, followed closely by Denver. Eight other U.S. markets surpassed the 10.1% national growth rate, including Salt Lake City, Charlotte and New York.
2. Eighteen markets had faster high-tech job growth in the past two years than in the preceding two years, led by Nashville, Salt Lake City, San Francisco and Phoenix.
3. Overall U.S. leasing activity slowed over the past four quarters, with Q2 2023 reaching the lowest level since the pandemic. Tech industry leasing activity also slowed but has started to rebound, rising from 9% (3.9 million sq. ft.) of overall leasing in Q4 2022 to 13% (4.5 million sq. ft.) in Q2 2023.
4. There are several promising indicators that AI will become a catalyst for the next tech growth cycle.