San Jose beats San Francisco as top U.S. office market
San Jose is the top U.S. office market, according to Marcus & Millichap’s 2017 National Office Property Index, followed by Seattle. Last year’s top market, San Francisco, slipped to the third position on a projected deceleration in job growth.
Strong technology market demand moved San Jose to the top spot in this year’s index. Employment in the region increased 2.7 percent, creating 37,100 jobs in 2016. Organizations will hire 30,000 workers this year, and office-using professions and education will lead growth.
Despite dropping to No. 3, San Francisco remains one of six Western metros in the top 10. The others are Portland, Ore., at No. 4, and Oakland, Calif., and Orange County, Calif., at No. 9 and No. 10, respectively. Oakland jumped from its 13th seed in 2016 and Orange County slipped from its seventh seed in 2016.
Four markets climbed into the top 10 from one year ago, including No. 5 Boston, which was No. 12 in 2016, and Raleigh, N.C. (No. 8). Ne