One of the fastest growing sectors for commercial real estate is technology. The tech industry is outperforming the U.S. in commercial leasing, rental rates and construction. From Silicon Valley all the way to St. Louis, tech companies are flooding the CRE market, also leading the way in productivity, innovation and overall growth, which is why our industry looks to the tech companies for inspiration.
According to the National Real Estate Investor, “Tech companies play a dominant role in the U.S. economy. Over the last three years, the industry’s growth outpaced the U.S. economy by an average of three to one. With more than $400 billion in gross cash, the tech sector is the only industry holding more cash than debt, and funding for high-tech in Q4 2013 increased by 60 percent over 2012.”
What can we learn?
Tech companies are forward-thinking, realizing the importance of luring, “the best talent by using not only their name but also their real estate and workplaces as part of the package.” They are investing in spaces that increase productivity and improve the quality of life, creating offices that employees look forward to visiting.
Many tech markets are also growing, which creates a need for flexible CRE solutions that allow for expansion and changing technologies. Mobile technology has made working remote an option, but there will always be a necessity for having a home base that reinforces the company’s brand and identity.
St. Louis has the resources to attract more high-tech companies and startups thanks to top universities, research programs, tech-friendly incubators and affordable commercial real estate. Contact us. We’d love to discuss opportunities to learn and grow with this dynamic sector.