These 9 Office Markets are a Safe Bet for Real Estate Investors
JLL recently released the 2018 City Momentum Index that cites the best U.S. cities for office investors based on economic growth potential. A majority of these markets are major expansion targets for Bay Area tech giants. The cities in the list include both primary and secondary markets. Let’s take a look at which cities made the cut.
The economy in the nation’s capital is largely driven by the federal government, but it is now diversifying. The information technology sector is becoming a major force in this local economy and is attracting Bay Area tech firms, which has already taken 1.2 million square feet of office space in D.C. and more growth is anticipated. The city also has a highly-educated and high-income labor force.
Denver offers a very diverse economy along with a skilled workforce and high-tech sector that has boosted the economy’s potential and also attracted Bay Area tech giants, which have leased nearly 1 million square feet of office space in the city in the past six years.
Boston is a global leader in research and technology and attracts plenty of tech firms from the Bay Area, which have leased 1.8 million square feet of office space in the market since 2012. Boston has a unique concentration of some of the world’s leading human capital and leading research institutions.
Seattle attracts plenty of expanding tech firms from the Bay Area, which have leased 3.5 million square feet of office space in Seattle, according to CBRE. The demand from growing tech companies is boosting economic momentum and real estate investment activity.
Chicago is the transportation, finance and distribution hub for the Midwest and Central U.S. and has attracted a number of Bay Area technology firms in the past five years. These firms occupy 1.5 million square feet of office space in Chicago.
San Diego offers a high quality of life, great universities and a large labor pool of STEM talented graduates punches above its weight for tech presence and new patents being issued. The economy also bodes well in environmental quality.
Los Angeles has a high-end university system that boosts growth in technology talent. The city’s vast pool of STEM talent has resulted in significant innovation potential and the city is top-ranked for U.S. markets for international patent applications.
San Francisco claims one of the top spots because of its popularity with tech firms. This city offers a dynamic innovation environment and boasts a highly educated and skilled population that propels the economy.
This Bay Area market is known for its heavy concentration of technology firms, fortified by a robust university structure. Silicon Valley ranks high in new patents and environmental health, which boosts its long-term positioning as an office market to invest in.