logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
United States
  • Global
  • United States
  • Angola
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Peru
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Russia
  • Saudi Arabia
  • Singapore
  • Slovakia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Segments

      Advisory Services

      Global Workplace Solutions

      Real Estate Investments

      • Advisory & Transaction Services
      • Capital Markets
      • Project Management
      • Property Management
      • Valuation & Advisory Services
      • Advisory & Transaction Services | Occupier
      • Client Strategy and Consulting
      • Facilities Management
      • Project Management
      • Development Services (Trammell Crow Company)
      • Flexible Space Solutions (Hana)
      • Investment Management (CBRE Global Investors)
    • Services for Investors
      • Appraisal Management
      • Debt and Loan Valuation
      • Federal Government Leases
      • Leasing & Advisory
      • Litigation Support
      • Net Lease Properties
      • Small Balance Lending
      • Corporate Capital Markets
      • Debt & Structured Finance
      • Going Concern Valuation
      • Investment Accounting & Reporting Solutions
      • Loan Portfolio Sales
      • Property Management
      • Telecom Advisory
      • Construction Risk Management
      • Energy & Sustainability
      • Host
      • Investment Banking
      • Loan Servicing
      • Property Sales
      • Valuations for Financial & Tax Reporting
    • Services for Occupiers
      • Business Transition & Move Management
      • Energy & Sustainability
      • Host
      • Location Analytics
      • Portfolio Services
      • Space Enablement
      • Client Strategy and Consulting
      • Expense Management Solutions
      • Labor Analytics
      • Location Incentives
      • Project Management
      • Workplace
      • Corporate Capital Markets
      • Facilities Management
      • Leasing & Advisory
      • Network Advisory
      • Real Estate Accounting
    • Asset Types & Specialties
      • Office
      • Aerospace and Defense
      • Data Centers
      • Golf & Resorts
      • Multifamily
      • Parking
      • Industrial & Logistics
      • Affordable Housing
      • Hotels
      • Land
      • Nonprofit
      • Self-Storage
      • Retail
      • Aviation Properties
      • Gaming
      • Manufactured Housing
      • Omnichannel
      • Senior Housing
    • Industry Sectors
      • Industrial & Logistics
      • Energy, Oil & Gas
      • Law Firms
      • Technology, Media & Telecom
      • Retail
      • Financial Services
      • Life Sciences
      • Data Centers
      • Healthcare
      • Student Housing & Education
  • Properties
  • Research & Insight
    • Latest National Research & Reports
      The Way Forward
      Weekly Insights
      Reopening the World's Workplaces
      COVID Resource Center
  • People & Offices
  • About CBRE
    • Careers
      Case Studies
      Corporate Information
      Corporate Responsibility
      Executive Leadership - Global
      Investor Relations
      Media Center
      Suppliers

Next

Press Release
CBRE Hires Charlie Knudsen and Julie Cook to Focus on Credit Tenant Lease Financing
  • About CBRE
  • Media Center
  • Denver a Top Destination for Tech Firms Expanding Outside Nation’s Leading Tech Headquarter Markets, Says CBRE’s Tech-30 Report

Denver a Top Destination for Tech Firms Expanding Outside Nation’s Leading Tech Headquarter Markets, Says CBRE’s Tech-30 Report

Denver, CO | November 1, 2018
  • Email
  • Share
  • Tweet
  • Share

Technology companies based in the top four tech headquarters markets—the San Francisco Bay Area, Seattle, Boston and New York—are expanding into new markets, creating more demand for office space and driving office rent growth in the beneficiary markets, according to CBRE’s annual Tech-30 report, which measures the tech industry’s impact on the office sector in the 30 leading tech markets in the U.S. and Canada. Together, tech firms headquartered in these four markets have taken more than 25 million sq. ft. of space outside of their headquarters markets over the past five years, led by firms in the San Francisco Bay Area, which accounted for 18 of the 25 million sq. ft.

The Denver office market has benefited from this trend, with tech firms from the top four tech headquarters markets taking 1.0 million sq. ft. in Denver over the past five years.

“When tech companies are looking to expand into a new market, they are looking for high-quality talent and the room to grow and scale operations. As tech firms run out of space in places like San Francisco, they see Denver’s balanced office vacancy rate, robust development pipeline, strong in-migration and good infrastructure and ultimately decide this is an advantageous place to be,” said Alex Hammerstein, senior vice president with CBRE’s Tech and Media Practice in Denver.

Buoyed by double-digit tech-sector employment growth, Denver ranked ninth for office rent growth among the Tech-30, up six spots from 2017. But while Denver’s average office asking rents rose 9.6 percent from Q2 2016 to Q2 2018, reaching $27.66 in the second quarter of this year, they are still well below the nation’s top tech HQ markets, including San Francisco and New York City, which boast office rents of $75.64 and $74.35 respectively.

Denver had more than 2.8 million sq. ft. of office space under construction at the end of September 2018, with more projects in the planning phase. At 14.6 percent, Denver’s office vacancy rate is also nearly double New York’s (7.6 percent) and nearly triple San Francisco’s rate (5.2 percent).

“As space availability in top tech submarkets continues to tighten, we expect large tech companies to continue to expand outside their headquarters markets—including further into secondary and even tertiary markets. Large tech company expansion into smaller markets will help foster innovation clusters, further boosting job creation and creating additional office demand,” said Colin Yasukochi, director of research and analysis for CBRE in the San Francisco Bay Area.

Top 10 Migration Beneficiaries

MARKET

5-YR INBOUND MIGRATION (FROM 4 HQ MARKETS)

RENT GROWTH RANK

TECH JOB GROWTH RANK (% CHANGE ’16-17)

RENT GROWTH (Q2 ’16-Q2 ’18)

VACANCY RATE

(AS OF Q2 2018)

Austin

2.5 MSF

15

7

7.9%

10.7%

Chicago

1.7 MSF

20

20

5.8%

15.6%

Los Angeles

1.3 MSF

2

9

15.8%

14.5%

Washington, D.C.

1.2 MSF

9

26

9.6%

17.2%

Denver

1.0 MSF

9

13

9.6%

14.6%

Phoenix

0.9 MSF

13

17

8.5%

16.2%

Portland

0.7 MSF

5

12

13.8%

11.7%

Minneapolis/St. Paul

0.7 MSF

24

29

3.1%

17.7%

San Diego

0.6 MSF

14

16

8.0%

10.6%

Orange County

0.4 MSF

3

10

15.5%

10.7%


About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Press Releases

Sara Johnston headshot
Sara Johnston
Corporate Communications, Mountain-Northwest Division
+1 303 2641912
+1 660 3499498
+1 303 6281751
  • Corporate Information
  • Corporate Responsibility
  • Case Studies
  • Media Center
  • About Us
  • Careers
  • People and Offices
  • Global Leadership
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Policy
  • Sitemap
  • Terms of Use
  • United States Privacy Policy
  • Our Response to SCHREMS II
  • Twitter
  • Facebook
  • LinkedIn