Trends shaping the future of the tech industry
After a few bumpy years, technology companies are balancing conserving cash, cultivating talent and scaling strategically in 2024. With real estate as a major budget line item, technology industry leaders are evaluating space use and hybrid policies to facilitate future-fit workspaces that encourage in-office productivity while keeping costs down.
Location strategy is top priority for tech companies: balancing cost, sourcing talent, and — especially for tech manufacturers — accessing government incentives. As AI use grows across industries, large well-capitalized tech companies are leading the charge due to the need for specialized resources and talent, with innovation concentrating in gateway markets.
In Technology Trends to Watch in 2024, we examine how the tech industry is paving the way to a brighter future.
Five real estate trends for technology companies in 2024
Technology firms adjust location strategy
In 2020 and 2021, leasing in gateway markets slowed as a percentage of overall technology industry leasing activity, as return to office was slower in most gateway markets and firms sought less expensive space in growth markets. Although leasing remains below pre-pandemic levels, gateway markets have bounced back to approximately half of all tech leases.
Artificial and human intelligence combine, changing career pipelines and shifting definitions of ROI
As focus intensifies regarding return on investment (ROI), tech companies are tapping administrative functions from markets with a lower cost of living, utilizing AI to maximize worker productivity. There’s also a renewed emphasis on skills-based hiring and internal promotions to maintain talent pipelines.
While jobs titles like software engineer continue to grow steadily, careers showing the most exponential expansion include information security analysts and lawyers, correlating with increasing security needs and evolving use of AI. Careers for computer and information research scientists, data scientists and logisticians will also grow in 2024.
What does the future look like for tech companies?
Download the full trends report to learn more about how tech firms are strategizing workplace, location and talent.