SAN FRANCISCO, Sept. 28, 2011 /PRNewswire/ — The combination of consumers’ unquenched demand for new technology and businesses’ application of new technologies, such as cloud computing, to gain efficiencies has given the high tech industry a job growth rate nearly four times faster than the national average since the employment trough was reached in February 2010 (5.1 percent vs. 1.4 percent).
Additionally, rising venture capital and initial public offering (IPO) activity is fueling key rapid evolution and growth segments of the high-tech industry. The services sector, which excludes manufacturing components of the high-tech industry, has the greatest direct impact on office space demand and is growing even faster at 5.9 percent, according to Jones Lang LaSalle’s high tech report that tracks 18 U.S. markets and provides an overview of the impact high-tech growth is having on office space supply, demand and pricing conditions.
High-Tech Report Highlights
- The high-tech growth cycle appears to be in the early stages with plenty of running room ahead for more hiring. Data indicates that this cycle is markedly different from the tech boom of the late 1990s.
- Of the more than 500,000 office-using jobs created nationally since February 2010, 127,000 jobs or 25 percent were in high-tech services illustrating the high-tech sector’s rapid growth rate.
- High-tech has accounted for 50 percent of total venture capital funding over the past four quarters. Biotechnology and medical devices combined comprise 25 percent.
- A national office market recovery is underway with established high-tech clusters substantially outperforming other areas of the office sector by recording strong rent growth, the highest net absorption levels and diminished space availabilities.