Market Size for Office Leasing

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01
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Part
01

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

The tech office leasing market sizes for Boulder, Washington DC, and Silicon Valley are $67.52 million, $9.2 billion, and $2.06 billion respectively.

Boulder, CO

  • The square footage of office space for tech companies in Boulder is 2.0 million square feet.
  • The average price per square foot for office space in Boulder is $33.76.
  • Therefore, the TAM of office space for tech in Boulder is $67.52 million (2.0 million * $33.76).

Silicon Valley

  • The square footage of office space for tech companies in Silicon Valley is 140 million square feet.
  • The average price per square foot for office space in Silicon Valley is $65.73.
  • Therefore, the TAM of office space for tech in Silicon Valley is $9.2 billion (140 million * $65.73).

Washington DC

  • The square footage of office space for tech companies in Washington DC is 49 million square feet.
  • The average price per square foot for office space in Washington DC is $42.02.
  • Therefore, the TAM of office space for tech in Washington DC is $2.06 billion (49 million * $42.02).

Research Strategy

All required data was obtained from CBRE research reports. The square footage for Washington DC was obtained from a Vox article that referenced CBRE data. The square footage provided for Silicon Valley in the Vox article is consistent with original CBRE data as it added the square footage for Silicon Valley (140 million square feet) and San Francisco Peninsula (19 million square feet) to get 159 million square feet.
Part
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Part
02

Tech Office Leasing Market Size: Austin TX, Boston MA, Seattle WA

The TAMs for tech office space in Austin, Boston and Seattle are $2.5 billion, $16.9 billion, and $5.2 billion, respectively.

Austin

  • The total square footage of commercial office space in Austin is 65.7 million square feet (SF).
  • The average price per SF for tech space in Austin is $37.84.
  • Therefore, the TAM for tech office space in Austin is $2.5 billion (65.7 million x $37.84).
  • The vacancy rate for tech space in Austin is 9.3%, compared to 9.0% for the office market overall.

Boston

  • The average price per SF for tech space in Boston is $92.62.
  • Therefore, the TAM for tech office space in Boston is $16.9 billion (182.7 million x $92.62).
  • The vacancy rate for tech space in Boston is 1.0%, compared to 11.8% for the office market overall.

Seattle

  • The square footage of commercial office space in Seattle is 126.5 million SF.
  • The average price per SF for tech space in Seattle is $41.44.
  • Therefore, the TAM for tech office space in Seattle is $5.2 billion (126.5 million x $41.44).
  • The vacancy rate for tech space in Seattle is 3.2%, compared to 9.7% for the office market overall.

Research Strategy

An extensive search of commercial real estate reports from CBRE, JLL, and Colliers, among others, did not find any publicly available information on the total square footage leased to tech companies in Austin, Boston, or Seattle. While there was data on the growth rate of tech leasing and information on tech talent in the cities, none of this data was helpful in determining the total amount of tech square footage.

Since we had uncovered data on the total amount of commercial space leased in each city, we attempted to find information on what percentage of the leased space was due to tech. Our research did uncover that 21% of office leasing activity in the U.S. and Canada in the first half of 2019 was due to tech companies, there was not data available on what percent of the overall space was used by tech companies. Therefore, this strategy was not successful. As a result, the total commercial office space in each city was used instead, and the TAM was calculated by multiplying the total office space by the price per square foot for tech space.
Sources
Sources