Chapter 6

How does Tech Talent impact commercial real estate?

Scoring Tech Talent 2026

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The high-tech industry has once again become a top driver of U.S. office leasing activity with rapid growth of AI-related companies. Tech companies accounted for 21% of total U.S. and Canada office leasing activity1 in the first half of 2026, up from 13% in 2023.

Prior to the pandemic, many tech talent markets, especially those with high concentrations or clusters of tech companies, had seen rising office rents and declining vacancy rates. But since early 2020, all but four markets have seen office vacancy rates increase, with Seattle, Denver and Chicago having the highest as of Q4 2025—each at 28% or higher. Compared with pre-pandemic Q1 2020, rents in the San Francisco Bay Area were 14% lower in Q4 2025. South Florida, Nashville, Austin, Dallas-Ft. Worth, Boston, Tampa, San Antonio and Charlotte had rent growth of 20% or more over the same period (Figure 33).

Figure 33: Office Asking Rent & Vacancy Rate by Market (Q4 2025)

1 Includes leases of 10,000 sq. ft. or more each quarter for the 50+ markets tracked by CBRE Research.
*New York represents Manhattan only, all others are metro area.
Source: CBRE Research, Q4 2025.

Tech talent continues to impact office markets through return-to-office and work-from-home policies. As hybrid work arrangements become standard, tech employers are still optimizing office space strategies. While many have downsized, others have maintained their portfolio size to accommodate large team meetings and ensure that there is sufficient space for collaboration. AI-related companies have substantially grown their real estate portfolios to accommodate rapid workforce growth and largely full-time work from the office.

Since early 2020, all but four markets have seen office vacancy rates increase, with Seattle, Denver and Chicago having the highest as of Q4 2025.

The in-migration of talent to these tech markets also has a sizable impact on residential real estate. Apartment rents have increased in 30 of 50 top tech talent markets since 2022. Manhattan was the most expensive last year with an average monthly rent of $3,653 (Figure 34).

Comparing the annual average apartment rent with the annual average tech-worker salary shows that tech salaries generally can cover the cost of living in most of the priciest markets (Figure 35), based on the affordability standard of 30% of income to housing. Only eight markets have a rent-to-tech wage ratio above 20%. Manhattan (29%) and South Florida (27%) had the highest ratios (least affordable) and San Antonio (12%) and Austin (13%) had the lowest ratios (most affordable).

Figure 34: Average Monthly Apartment Rent by Market (Q4 2025)

*New York represents Manhattan only, all others are metro area.
**2022 to 2025.
Source: CBRE Econometric Advisors, Axiometrics, CMHC, Q4 2025.

Figure 35: Ratio of Apartment Rent to Average Tech Wage by Market (US$)

*New York represents Manhattan only, all others are metro area.
Sources: U.S. Bureau of Labor Statistics, Statistics Canada, CBRE Econometric Advisors, Axiometrics, CMHC, 2025.
Comparing the annual average apartment rent with the annual average tech-worker salary shows that tech salaries generally can cover the cost of living in most of the priciest markets

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Chapter 7 What are the up-and-coming markets for Tech Talent?
Chapter 5 How is Tech Talent quality vs. cost measured?