CBRE Report: Seattle Records All-Time High Office-Using Services Job Growth in 2019
22 Jan 2020
Fueled by the tech industry, the Seattle metro added 20,800 office-using services jobs in 2019 – an all-time high for the market and the second highest growth rate in the nation, following only San Francisco, 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 Seattle. The rapid growth has fueled office rent growth as well as new office development,” said Lexi Russell, Director of Research and Analysis for CBRE’s Mountain-Northwest division.
Office-using services employment has been expanding steadily in Seattle since 2009, growing 35% in the last decade, which is more than double the national average. Current projections for 2020 indicate continued employment growth, albeit not at the historic pace of years prior. According to CBRE Econometric Advisors, the Seattle metro is projected to grow 1.2% in 2020, placing it ninth among top U.S. metros.
“The Seattle metro is scheduled to add over 3 million sq. ft. of new office space this year, with two-thirds already pre-leased. Although net growth from these new buildings is unknown, these buildings could house an estimated 15,000 new workers over the course of the next few years,” added Ms. Russell.
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.