In some Texas cities, it’s not too difficult to find plenty of commercial real estate space occupied by some type of tech-based company. A new report issued by a leading global commercial real estate services company suggests the tech industry is indeed dominating the commercial real estate market throughout the United States. In fact, according to the report, tech companies now account for just over 40 percent of the square footage within the top 100 leases in North America.
Another aspect of commercial real estate that has been impacted by tech-related businesses is office rentals. The price per square foot for office areas in the top 25 tech cities identified in the report has spiked nearly 60 percent since the dawn of the 21st century. There’s also an overlap between cities that are a hotbed for new construction and ones considered major tech markets. This suggests a connection between demand for new office space and industry demand.
The increased need for commercial real estate by tech-related clients is partially driven by the rapid increase in tech employment in the U.S., which has largely outpaced the growth of the general economy. All of these new tech workers need places to work, which explains why the hunt is on for available office space in places like Silicon Valley, San Francisco, Austin and the Dallas-Forth Worth area. The main drawback of this trend is that office rents in tech-heavy metros may be less affordable for some prospective tenants.
An attorney can play an important role in commercial real estate transactions by negotiating lease terms for new tenants or helping sellers get a fair price. A lawyer can also make an effort to settle any disputes that may arise before agreements are signed or during the lease period.