Market Size for Office Leasing
The tech industry accounts for about 21% of "major office-leasing activity" in the US and Canada. The estimated market size for the currently available office space for the tech industry as a sublease is 21.567 million sq.ft. in the US. For Canada, the currently available office space for the tech industry as a direct or open market is about 1.63 million sq.ft.
MARKET SIZE FOR OFFICE LEASING
- Since 2013, the high-tech industry accounted for the "largest share of US major office leasing activity with a 21% share in the first half of 2019, up from an annual share of 19% in 2018 and 18% in 2017."
- Based on the Newmark Knight Frank's Q4 2019 report, the total US office inventory is 4.9 billion sq ft. with 102.7 million sq.ft. of immediately available sublease office space.
- The sublease office space accounts for about 2.1% of the total available office space in the US.
- Therefore, this means tech would account for around 21.57 million sq ft in currently available subleases (21% x 102.7 million sq ft).
- Therefore, the current market size for sublease office space for the tech industry in Canada would be about 21.567 million sq.ft. (21% of 102.7 million sq.ft.).
- Based on the CBRE report, tech companies in the US and Canada "accounted for a record 21% of major office-leasing activity" in H12019.
- Investment in the commercial real estate in Canada reached "a third consecutive annual record in 2018 at $49.3 billion, 68.3% above the 10-year average."
- The market size for new office space available in Canada is about 14.6 million sq.ft. with 2.9% of under-construction office inventory.
- The market size in terms of investment volume in office space in 2019 is estimated at $10,494 million or $10.5 billion in Canada.
- As per the CBRE CANADA Q4 2019 report, the total available direct or open office space in Canada as of Q42019 is of 43,593,736 sq.ft. (or 43.59 million sq.ft.) and sublet space is 7,767,211 sq.ft. or 7.77 million sq.ft.
- Therefore, the current market size for direct or open office space for the tech industry in Canada would be about 9.15 million sq.ft. (21% of 43,593,736 sq.ft.).
- And, the market size for sublet office space for the tech industry in Canada would be about 1.63 million sq.ft. (21% of 7,767,211 sq.ft.).
Since direct information on the market size for immediately available commercial office leases in the tech industry in the US and Canada in unavailable in the public domain, your research team attempted the triangulation method to at least get a rough data on this. While searching through various industry-specific reports, media articles, and others such as CBRE research, PwC report, Deloitte report, The Globe and Mail, World Property Journal, and others, we were able to find some crucial information including the percentage share of the tech companies in the US and Canada for major office leasing activity, total US office inventory as of immediately available sublease office space, and total direct available open and sublet office space in Canada.
The above-mentioned information was used to calculate a rough estimate for the market size of the currently available sublease office space for the tech industry in the US and direct or open office space for the tech industry in Canada. Assumption: From the CBRE Research report, we have assumed that "direct" office space is the office space available on the open market in Canada.