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

CBRE Recognized for Real Estate Industry’s "Best Use of Automation" by Realcomm
  • About CBRE
  • Media Center
  • Salt Lake City Moves From Emerging Market to Growth Leader In CBRE's Annual Tech Thirty Report

Salt Lake City Moves From Emerging Market to Growth Leader In CBRE's Annual Tech Thirty Report

December 1, 2016
  • Email
  • Share
  • Tweet
  • Share

The South Valley Submarket Leads the Local Market In Tech Growth

Salt Lake City—November 30, 2016—Salt Lake City transitioned from an “emerging market” to a “growth leader,” meaning it saw above-average high-tech software/services job growth and above-average office market performance, according to CBRE’s annual Tech-Thirty report, which analyzes the 30 leading technology markets in the U.S. and Canada in terms of high-tech software/services job growth. Salt Lake achieved the seventh-highest net absorption growth (5.8 percent) in the report, reflecting the impact that tech is having on the local commercial real estate market.

“Tech has been a driving force in Salt Lake’s economy for some time now, as evidenced in the market’s transition from an emerging market to a growth leader,” commented Eric Smith, a senior vice president in CBRE’s Salt Lake office. “Of particular note is the fact that the area with the greatest concentration of tech firms—the South Valley submarket—had 1.3 million sq. ft. of office space under construction at mid-year 2016. Though not all of this will be filled by tech users, there is a direct link to the high construction levels and the number of technology firms near the Point of the Mountain. In fact, the South Valley ranks fourth in the report for net absorption, meaning much more real estate was leased or occupied than vacated. These are strong numbers and they bode well for the local economy.”

Tech-related office leasing accounted for 20 percent of all office leasing in the U.S. in the first half of 2016, up from 18 percent in 2015, despite an overall slowing in tech job creation. In Salt Lake, 37 percent of top leases through mid-year 2016 were driven by tech firms.

Office Rents in the Tech-Thirty
The CBRE report shows that office rents for the top submarket in each of the 30 markets analyzed increased in all but one submarket between Q2 2014 and Q2 2016. The highest rent growth in this period occurred in both established and up-and-coming tech submarkets, illustrating stiff competition among tenants to locate in areas rich in talent, such as University City, Oakland/East End Pittsburgh, East Cambridge, Palo Alto and Tempe. Average office rents in Salt Lake’s top tech market, the South Valley, average $23.73 per square foot, full service, compared to $22.52 for the overall Salt Lake market during the same time period. However, the South Valley’s achieved rent growth of nearly 8 percent was lower than the overall Salt Lake market, which reached 12.4 percent over the past two years.

Job Growth in the Tech-Thirty
CBRE also analyzed the Tech-Thirty markets according to high-tech industry job growth. San Francisco topped the rankings for the fifth consecutive year; its high-tech job base has grown 47.0 percent between 2013 and 2015, while average asking rents increased by 22.7 percent from Q2 2014 and Q2 2016. Eighteen markets outperformed the U.S. average of 13.7 percent job growth in high-tech software/services, with Phoenix (44.5 percent), Austin (33.3 percent), Charlotte (33.2 percent), and Indianapolis (27.9 percent) rounding out the top five. Salt Lake City experienced high-tech job growth of 14.1 percent during this same time period.

Over the past five years, the software/services industry created 780,000 new jobs at a 7.3 percent growth rate and accounted for nearly 20 percent of major leasing activity. In H1 2016, tighter labor and volatile capital market conditions led to job creation slowing to a 4 percent annual growth rate, which had a slight impact on certain office markets, like Washington, D.C., New York and the San Francisco Bay Area.

“Advanced technology has integrated itself into business productivity and although the talent pool is limited, strong demand for technology services from both businesses and consumers is expected to support hiring by high-tech firms. The skills of the available labor pool do not appear to align with available jobs, causing a structural barrier to growth,” said Colin Yasukochi, director of research and analysis, CBRE. “This demand for technology should support growth among high-tech companies and high-tech office market clusters.”

High-Tech Software/Services Job Growth

​Office Market Rent Growth

 Rank

 Market

2013-2015

 Rank

 Market

Q2 '14 vs. Q2 '16

1

San Francisco

47.0%

1

Silicon Valley

28.4%

2

Phoenix

44.5%

2

Raleigh-Durham

24.6%

3

Austin

33.3%

3

Orange County

24.3%

4

Charlotte

33.2%

4

San Francisco

22.7%

5

Indianapolis

27.9%

5

SF Peninsula

19.8%

6

Silicon Valley

26.1%

6

Nashville

18.1%

7

Toronto

25.9%

7

Dallas/Ft. Worth

16.6%

8

New York

25.9%

8

Austin

15.3%

9

Chicago

21.1%

9

Charlotte

14.8%

10

Dallas/Ft. Worth

19.7%

10

Portland

14.2%

11

Pittsburgh

18.8%

11

San Diego

13.6%

12

Seattle

17.6%

12

Boston

12.7%

13

Detroit

17.1%

13

SALT LAKE CITY

12.4%

14

Vancouver

16.8%

14

Denver

12.0%

15

Raleigh-Durham

16.3%

15

New York

11.6%

16

Nashville

16.2%

16

Phoenix

11.6%

17

San Francisco Peninsula

15.1%

17

Atlanta

11.4%

18

SALT LAKE CITY

14.1%

18

Los Angeles

10.1%

19

Orange county

13.3%

19

Minneapolis

10.0%

20

Los Angeles

13.0%

20

Vancouver

9.0%

21

Atlanta

12.6%

21

Pittsburgh

7.3%

22

Boston

12.2%

22

Chicago

5.7%

23

Portland

12.1%

23

Seattle

5.2%

24

Denver

10.1%

24

Indianapolis

5.0%

25

Minneapolis

8.1%

25

Philadelphia

4.4%

26

San Diego

8.0%

26

Detroit

3.5%

27

Baltimore

4.5%

27

St. Louis

-0.3%

28

Washington, D.C.

3.9%

28

Baltimore

-0.5%

29

St. Louis

2.3%

29

Toronto

-1.2%

30

Philadelphia

2.3%

30

Washington, D.C.

-3.7%

Source: U.S. Bureau of Labor Statistics, July 2016, Statistics Canada, August 2016, CBRE Research, Q2 2016.

 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 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.​

​​​​​​​

Contact

KMcMillan 2019
Kathleen McMillan
Senior Marketing Manager
Americas Marketing
+1 801 869 8045
  • 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