Tech remains leading industry for real estate expansion, VC funding
Guest post by Bryan Sparkes (@BryanSparkes) of JLL Boston.
According to our recently released JLL Technology Office Outlook, the technology sector remains the leading industry for real estate expansion in the US, driving 22% of large-block leasing activity across the country over the past two years. Here in Boston, which ranks amongst the top five markets in several key categories measured in the report, this trend couldn’t ring more true. In fact, our region is third in the country for tech leasing with more than 1.8 million square feet absorbed over the past year.
When it comes to VC funding, the conversation is much the same, with 72% of year-to-date venture capital activity coming in the tech sector. While major technology hubs like Greater Boston continue to attract strong venture capital investment, the velocity of venture-backed deals has slowed across the country. This will inevitably have a trickle- down effect on the real estate market as companies look to do more with less.
Despite the broader pullback, in Boston funding has actually grown over the last several years. The city currently ranks fifth in the US behind only San Francisco, Silicon Valley, NY and LA with over $2.3 billion in funding over the past year, a modest increase from 2015 and an impressive 66% increase from two years ago.
To hear more on these and other trends impacting the technology industry, I encourage you to download our complete report.