Tech-30 2023

Tech-30 explores the tech industry’s impact on office space and ranks the 30 leading tech markets in the U.S. and Canada, as well as 10 up-and-coming tech markets.

1. How is the tech industry performing and where is it headed?

   1.5M	547k
   jobs created since 2013	jobs created since the pandemic's onset

   Tech industry job growth has slowed but not stopped. It remains well above the national average and fewer layoffs may be a precursor to renewed growth.

   Continued venture capital investment and the Nasdaq’s rebound in 2023—along with the rapid advances in AI and other innovations—could potentially catalyze the next tech growth cycle and produce significant economic value, employment and office leasing demand.

2. Which are the top markets for high-tech job growth?

   Vancouver	Austin	Denver
   +26%	+26%	+24%

   Vancouver and Austin led North America for high-tech job growth over the past two years (2021 and 2022), followed closely by Denver. Eight other U.S. markets surpassed the 10.1% national growth rate, including Salt Lake City, Charlotte and New York. New York also created the most jobs (+28,166).

3. Which are the top momentum markets with faster high-tech job growth?

   Nashville	Salt Lake City
   +11%	+10%
   San Francisco	Phoenix
   +8%	+8%

   Eighteen markets had faster high-tech job growth in the past two years than in the preceding two years, led by Nashville, Salt Lake City, San Francisco and Phoenix. Several major U.S. and Canadian markets did not gain momentum, even though three (Vancouver, Charlotte and Seattle) had double-digit high-tech job growth rates.

4. How are tech office markets performing?

   Leasing activity slowed, sublease space rose and AI emerged.

   Overall U.S. leasing activity slowed over the past four quarters, with Q2 2023 reaching the lowest level since the pandemic. Tech industry leasing activity also slowed but has started to rebound, rising from 9% (3.9 million sq. ft.) of overall leasing in Q4 2022 to 17% (7.3 million sq. ft.) in Q3 2023. Lower overall leasing contributed to increased sublease space across the Tech-30, accounting for 4.8% of available space in Q2 2023. There are several promising indicators that AI will become a catalyst for the next tech growth cycle.

5. Which tech markets are most resilient and positioned for renewed growth?

   Vancouver, Boston, Salt Lake City, New York & Charlotte

   These markets have the best combination of future tech demand drivers and office market fundamentals.

6. How diverse is the tech industry?

   U.S. tech industry diversity by race, ethnicity and sex has improved over the past five years but remains mostly Male (67%), White (56%) and Asian (18%). Females (33%) are underrepresented compared with non-tech office-using industry employment (52%). Hispanics, Blacks and Other races see roughly equal representation within and outside of the U.S. tech industry.