Tech-Heavy Cities Boost Office Market Recovery

Technology-heavy markets are playing a major role in the slow, but steady recovery of the U.S. office market.  Vacancy rates dropped to 16.6% in the first quarter of 2015, down from 16.7% in the previous quarter.  Additionally, rents also increased to $30.21 a square foot, up 0.9% from their 2010 mark.  Experts agree that although there is still room for improvement, the U.S. office market is relatively healthy.

Leading the pack in the recovery are markets packed with growing technology companies.  San Jose, CA leads the country in rent growth over the past year with a 7.2% increase from last year’s rents.  Seattle and San Francisco are not far behind with rent growths over the past year of 6.4% and 5.9% respectively.  Large technology companies such as Facebook, Amazon, and Uber are hiring new employees at a rapid rate and are requiring additional office space as a result.  This growth is not expected to slow down anytime soon.  

Meanwhile, as technology-heavy markets thrive, markets dependent on oil are struggling in the office sector.  Houston, which currently houses one-sixth of the office space under construction in the U.S., has seen a growing trend in office subleasing.  6.3 million square feet of sublease space was available at the end of the first quarter, this number is up from 4.8 million at the end of 2014.            

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Virginia MacKoul

Virginia is a graduate from the University of Florida's College of Design Construction and Planning with a degree in Sustainability and the Built Environment, and a minor in Urban Regional Planning. Virginia joined the Front Street team in 2011, as an intern. Upon graduation, Virginia joined the Front Street team full-time as the Director of Client Services. Ms. MacKoul’s addition furthers Front Street’s continued growth and expansion within Gainesville and other North Central Florida markets. She was promoted to Director of Marketing in 2014 and now manages the firm’s team of interns and oversees all marketing and branding activity. Virginia was born in Boston and moved to Lee County, Florida in 1997. Virginia graduated her high school's International Baccalaureate program and started at the University of Florida with a focus on Architecture. Virginia shares Front Street's passion of giving back to the community and those in need. Virginia's hobbies include photography, cooking, football, movies, music, and spending time with her dog, Brinkley.

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