CBRE Report: Growth in Office-Using Service Jobs Favors Tech Hubs, Texas and Southeast Cities

Austin is expected to see the largest year-over-year growth for office-using jobs in 2020

Tech hubs, business-friendly Texas cities and high-growth southeastern metro areas top the ranks of U.S. markets set to expand their base of office-using jobs the fastest in the coming years, according to a new report from CBRE. Although all of Texas’ major metros are expected to see growth this year, tech hub Austin’s forecast is brightest with a 2.6% increase year-over-year.

“In the office sector, Austin has been consistent, year-over-year, at growing rents, keeping vacancy rates low and delivering high quality new developments pre-leased to market,” says Troy Holme, Executive Vice President at CBRE in Austin. “It’s not surprising that the forecast for Austin is extremely bright and we expect that technology companies and professional firms will still drive the demand for more office product.”

CBRE analyzed the forecasts of its CBRE Econometric Advisors unit to identify which markets are expected to generate the largest percentage growth in office-using services jobs – such as tech, professional and business services, legal, and others –this year. It found that job growth in tech markets continues to defy high costs and tight labor supplies. Meanwhile, the relatively lower cost of living and high demographic of Texas and various southeastern cities continue to stoke job gains.

“Tech, talent and low taxes continue to fuel Texas’ rising status as an inevitable, leading force in the U.S. economy,” said Ian Anderson, CBRE Americas Head of Office Research. “2020 will be another year where companies and people from around the country relocate to the Lone Star State, leaving most of the rest of the country in envy of the growth in Dallas, Houston and Austin.”

Top U.S. Markets For Office-Using Services Job Growth in 2019 and 2020

To read the full report, click here.