US Tech Remains Vibrant, and Provides Resilience to Top Markets

Chicago West Loop had nearly 600K in tech leasing activity over the last year, the third highest of any submarket in the US.

CHICAGO—The nation’s long run of economic growth has already lasted significantly longer than many past expansions, and this has caused some observers to worry that a recession is just around the corner. But whenever the economy does begin to plateau or even decline, those cities and regions with the strongest tech markets are far more likely to weather the storm, according to JLL’s latest Tech Office Outlook report. In fact, the Chicago-based firm found that tech sector growth continues to outpace the national economy and create strong real estate conditions across the country.   

Company researchers studied the office leasing activity in 45 top US metro areas for leases of 20,000 square feet or more, and the data show the technology sector drove nearly 25% of this activity over the past two years. Furthermore, 63% of the tech leases involved expansions, compared to about 48% of leases overall.