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News release

BOSTON, MA

More U.S. and Canadian Office Markets Ride Wave of High-Tech Hiring

Boston-Cambridge ranks third among North American markets


BOSTON, May 3, 2012 – Strong growth in high-tech sector hiring and increasing  competition between firms for talent created new  tech-oriented submarkets around the U.S. and Canada in the first quarter of 2012, according to Jones Lang LaSalle’s High Tech Industry Report

"Despite high-tech’s relatively small footprint in office markets, accounting for just 8.5 percent of all jobs using office space, it has had a tremendous impact on the absorption of office space in the top five tech-oriented markets.  Additionally, the sector's recent employment growth — roughly three times the overall U.S. employment rate – has begun to affect a growing number of other markets around the U.S. and Canada," said Colin Yasukochi, Northwest Director of Research, Jones Lang LaSalle

Ranking third among major tech-oriented North American markets, Boston-Cambridge recorded annual rent growth of nearly 28 percent. “Companies in the technology sector continue to expand their business models and engage in a vigorous battle to land new pools of talent,” said Jones Lang LaSalle Research Analyst Rebecca Herbst. “This demand is strongest in Cambridge, but a tightening office market has led to spillover demand in neighboring submarkets.”

High-tech demand for office space, which has led to rent recovery in many markets adversely affected by the financial downturn, is now spurring speculative construction activity in the office sector for the first time in more than five years.
“In markets like Cambridge,” Rebecca said, “high-tech demand remains intense but there are very few large blocks of space to accommodate growth. For example, Google’s continued growth in Cambridge has led to a creative solution. Two skybridges will be constructed in order to connect its three Cambridge Center offices, adding 40,000 square feet to its portfolio. As rents continue to rise, we will begin to see more build-outs and new construction from those with access to capital.”

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide,
including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.2 billion of assets under management. For further information, please visit www.joneslanglasalle.com.