Office space is in high demand, especially in key markets. However, the industries occupying office space are shifting as jobs shift in our technology-driven workforce. Not only are these industries changing who is in the space, but also, how the space is used. There’s more open-concept offices, collaborative spaces, medical office space and cloud-based technologies.
Based on projections for occupations most likely to produce more jobs between now and 2022, from the Department of Labor (DOL) and the National Real Estate Investor, we would like to forecast industries to keep an eye on for office commercial real estate brokers.
Marketing, advertising and information jobs accounted for 9.6% of all leasing activity nationwide during the third quarter of 2013*. That number should continue to rise as the outlook for job growth in these fields is expected to grow by nearly 600,000 jobs over the next seven years. Creative companies are seeking more collaborative office space to fuel creativity.
The healthcare industry is growing ambitiously. In a report from Cushman & Wakefield and Moody, healthcare jobs are projected to grow by 2.5 million between now and 2020. Many of those jobs will be in hospitals, but many employees will be in medical office space. Trends have already shown medical offices moving to more residential shopping areas to make healthcare more accessible.
Financial workers, such as advisors and analysts, are expected to see exponential growth in workplace numbers as well. Financial services accounted for 11.9% of all leasing activity during the third quarter of 2013*.
High tech will continue to see high growth. The tech sector is already the leading office real estate occupier, leasing more than any other sector at 17.8% (in the third quarter of 2013*). Job growth, according to the DOL, is expected to rise 10.8% across all tech jobs leading up to 2022. Cities are vying to be the next Silicon Valley, luring new tech companies with incubator programs, grants and attractive real estate tax credits.
“The race is on among cities vying to become the next Silicon Valley. As a result, more incentives and tax credits become available to lure high-tech companies into markets that are in need of jobs and economic growth,” said Cara Trani, co-lead of JLL’s Technology brokerage group. “High-tech’s growth is not exclusive to traditional high-tech markets anymore — clusters have become much more common as high-tech innovations form the backbone of new product development in all industries.”
We’d love to hear your insight into these potentially high growth sectors for commercial real estate office space. Contact us to discuss potential investment opportunities.
*most recent data available to the DOL