Unicorn hunters: Technology-driven property markets have outperformed in the current expansion
It’s undeniable: The U.S. economy is in the best shape since the global financial crisis. Job growth is up, and the unemployment rate is down. And the brightest spot right now is the technology industry, which has the fastest rate of job growth of any sector. So it’s no coincidence the property markets where tech jobs are being created are showing some of the strongest property fundamentals.
“Tech-driven markets are experiencing a tremendous amount of growth based on the new jobs that industry has created. Tech is also the fastest-growing industry as it relates to generating jobs for office space occupancy,” says Colin Yasukochi, director of research and analysis with CBRE.
“As investors, we tend to focus on locations where there are technology or other innovation industries because we think those are more likely to grow more rapidly, at least in the near and intermediate term,” says Eric Yopes, a principal with Embarcadero Capital Partners.