Orlando Makes The ‘Next 10 Tech Markets To Watch’ List In CBRE’s Annual Tech-30 Report

Nov 10, 2019 No Comments by

Orlando is the 4th next market by high-tech employment in the “Next 10 Tech Markets to Watch” list that is part of CBRE’s annual Tech-30 report, which measures the tech industry’s impact on office rents in the 30 leading technology markets in the U.S. and Canada. The report notes Orlando’s overall tech-industry employment of 26,747 and an 8.8 percent tech share of office clustering as the basis for its ranking.

 

“We have seen tremendous growth in the tech sector in Orlando,” said Jim Gray, Managing Director at CBRE. “The city is a magnet for top-tier tech talent, which allows new tech companies to enter the market as existing tech firms continue growing. This growth results in higher demand for office space and promotes office development.”

Among the accelerating factors for Orlando’s ranking is the surge of tech talent in the market over the past two years. Orlando’s tech talent labor pool grew 14.1 percent faster during the recent two-year period (2017-2018) compared with the previous two-year period (2015-2016). While attracting more tech companies to the area, Orlando’s office rents grew 20.8 percent over the past five years.

 

Next 10 Tech Markets to Watch

Market Tech-Industry Employment High-Tech Employment Clustering
Kansas City 35,954 13.2%
Ottawa 33,600 24.7%
Tampa 30,824 8.8%
Orlando 26,747 8.8%
Cincinnati 21,853 12.7%
Waterloo, Ont. 14,000 23.3%
Sacramento 13,673 6.8%
Las Vegas 12,315 6.0%
Milwaukee 11,706 6.3%
Huntsville, Alabama 10,389 16.9%

 

Tech’s impact on Leasing Activity and Rent Growth in Tech-30 Markets

CBRE’s analysis found that tech companies accounted for 21 percent of major office-leasing activity across the Tech-30 markets in the first half of this year, up from 11% when CBRE began tracking the figures in 2011. Strong leasing activity is fueled by the tech sector’s robust job growth, which even as it slowed to 4.5 percent in this year’s first half due to tight labor conditions, is still more than double the national job-growth rate.

Office-rent growth has been strong for the Tech-30 in the past two years, with 10 markets posting double-digit percentage growth in average rents over this period, led by San Francisco. Overall, rents increased in 28 of the Tech-30 markets since 2017.

 

“The North American tech industry has diversified its economic base as it has grown, expanding its presence in many Tech-30 markets,” said Colin Yasukochi, Executive Director for research for CBRE’s Tech and Media Insights Center and co-author of the report. “Meanwhile, large tech companies have been an ongoing source of demand; The 10 most active tech companies leasing office space since 2013 account for 27 percent of overall tech-industry leasing.”

To read the full report, click here.

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