CBRE Report: San Francisco Leads Nation in Office-Using Services Job Growth in 2019
21 Jan 2020
San Francisco led the nation in office-using services job growth in 2019 and is poised to rank second in 2020, following only Austin, Texas, according to a new report from CBRE. Across the board tech hubs, business-friendly Texas cities and high-growth southeastern metro areas top the ranks of U.S. markets set to expand their base of office-using services jobs the fastest in the coming years.
“Technology has been the catalyst for office-using job growth and overall real estate demand in San Francisco. The rapid growth has fueled office rent growth as well as new office development,” said Lexi Russell, Director of Research and Analysis with CBRE in San Francisco.
Office-using services jobs are projected to grow 2.5% in San Francisco in 2020. This would add an additional 6,800 office workers that would occupy 1.2 million sq. ft., some of which will be occupying new office buildings coming to market 100% pre-leased this year.
CBRE analyzed the forecasts of its CBRE Econometric Advisors unit to identify which markets are expected to generate the largest percentage growth in office-using services jobs – such as tech, professional and business services, legal, and others – this year. It found that job growth in tech markets continues to defy high costs and tight labor supplies. Meanwhile, the relatively lower cost of living and business-friendly approach of Texas and various southeastern cities continue to stoke job gains.
“U.S. consumer confidence and spending remain healthy – supported by a strong stock market and high home values -- which underpins most U.S. economic expansion and job growth,” said Ian Anderson, CBRE Americas Head of Office Research. “Due at least partly to that, we should see another year of strong office demand and growing rents in many U.S. markets.”
Top U.S. Markets For Office-Using Services Job Growth in 2019 and 2020
To read the full report, click here.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.