|In 2018 the technology sector cemented its position as a major driver for the U.S. economy and office market. Funding for tech-related businesses soared—companies with valuations of $1.0 billion or more reached a record 156—and venture capital investments roughly doubled in 2018. The tech sector was, by far, the largest lessor of office space in the U.S.|
Tech is big. The tech sector accounted for 7.6 msf or two-thirds of the increase in jumbo lease square footage between 2017 and 2018.
Tech is concentrated geographically. The ten markets with the largest volume of tech leasing accounted for 75% of the tech leasing in the top leases data set.
Tech is really a very diverse set of industries. There are 46 individual industries including streaming video, digital advertising and internet publishing to virtual reality, video gaming, cloud computing, cyber security, transportation and artificial intelligence.
And there’s more. The tech sector is part of just about every major industry. Fintech—the use of technology in the financial sector—is one of the fastest growing employment categories in finance.
One thing is clear. Technology is now the dominant sector in the U.S. office market. Don’t expect that to change any time soon. Read the latest spotlight to learn more on this growing tech sector in the office market.