Brief | Future Cities
Tech Industry Firms Shift Location Preferences
February 10, 2020
Software, search and ecommerce firms accounted for 62% of the 100 largest tech industry office space leases in 2019 by square footage. These 100 deals comprised 24.6 million sq. ft., ranged in size from 110,000 to 1.3 million sq. ft. and were concentrated in the San Francisco Bay Area, Manhattan and Seattle. A major portion of last year’s largest leases shifted from the San Francisco Bay Area to Manhattan and Seattle compared to 2018. Bay Area volume dropped by 37% while Manhattan and Seattle volume jumped by 148% and 63%, respectively. Many tech firms channeled growth outside their major hubs to markets with more available and lower cost labor supply and strong talent growth pipelines. Washington, D.C. leasing activity increased by 37% year-over-year and Phoenix and Nashville broke into the top 100 deals for the first time in 2019 as tech firms expanded into larger facilities.