The technology industry is one of the key drivers of growth for our economy here locally, but it’s also flourishing across the US. In fact, according to JLL’s recently released Technology Office Outlook, the tech sector remains the leading industry for real estate expansion in the US, driving 22% of large-block leasing activity across the country over the past 2 years. Furthermore, as the report reveals, 63% of tech companies leasing 20,000 square feet or more were in growth mode during the last year compared to the overall US rate of just 49%.
While Silicon Valley continues to lead the pact in many regards, Boston remains one of the nation’s leading technology hubs. With over 1.8 million square feet leased over the past year, the region is #3 in the US for tech leasing. More specifically, East Cambridge and the Financial District are among the most active CBD submarkets in the country, while 495/North and the Northwest are among the top 15 suburban submarkets nationally for tech leasing.
See what JLL EVP Bryan Sparkes has to say about what’s driving our continued momentum in the tech market.
“Boston in the last few years has really solidified itself as a tech hub because of our ability to grow companies here and provide an environment where young people want to stay and work,” said Bryan Sparkes, EVP and Boston Tech Practice Lead.
“If you look at the past few years, we’ve seen consistent growth in VC funding in Boston, going from $1.4 billion two years ago to $2.3 billion to date. Seeing a lot of the Boston-based funding happening here and having grown over the last couple of years really goes to show that Boston is here to stay.”
And that resiliency goes beyond just VC funding. In fact, when looking at factors including economic momentum, talent pool, innovation and cost, Boston ranks as the 5th most resilient market in the US behind the likes of Silicon Valley, San Francisco, Austin, and Seattle.
For more on how Boston stacks up on a national scale, download the complete JLL Technology Office Outlook.