Market Size for Office Leasing

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Tech Office Leasing Market Size: Boulder CO, Washington DC, Silicon Valley

The TAMs for tech office space in Boulder, Washington D.C. and Silicon Valley are $67.5 million, $1.8 billion, and $15.8 billion, respectively.

Boulder

  • The square footage of office space for tech companies in Boulder is 2.0 million square feet (SF).
  • The average price per SF for office space in Boulder is $33.76.
  • By using the average rental rate for office space in Boulder rather than the rate specific to tech space, it is estimated that the TAM for tech office space in Boulder is $67.5 million (2.0 million x $33.76).
  • The vacancy rate for office space in Boulder is 6.24%. The vacancy rate specific to the tech leasing market was not found during our research.

Washington, D.C.

  • The square footage of office space for tech companies in D.C. was 49 million SF.
  • The average price per SF for tech office space in D.C. is $36.80.
  • Therefore, the TAM for tech office space in D.C. is $1.8 billion (49 million x $36.80).
  • The vacancy rate for tech space in D.C. is 17.3%, compared to 16.6% for the office market overall.

Silicon Valley

  • The square footage of office space for tech companies in Silicon Valley was 140 million SF.
  • The average price per SF for tech office space in Silicon Valley is $112.56.
  • Therefore, the TAM for tech office space in Silicon Valley is $15.8 billion (140 million x $112.56).
  • The vacancy rate for tech space in Silicon Valley is 3.7%, compared to 5.9% for the office market overall.

Research Strategy

Most of the data required was found in reports from CBRE. However, information on the rental rate specific to tech office space in Boulder was not found after extensive searches through reports from CBRE, JLL, and Colliers, among others. Therefore, for Boulder only, the rental rate for office space overall was used to estimate the TAM for tech office space.
Sources
Sources