AUSTIN—A healthy influx of high-tech employment has played amajor role in the recovery of the U.S. office market, says a recentreport from CBRE Group Inc., with Austinaccounting for the sixth-best market for rent growth in thecountry.

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Austin has seen a double-digit rent growth over the past twoyears, according to the report, titled “U.S. Tech-Twenty: MeasuringOffice Market Impact.”

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The research tracks high-tech employment and office marketconditions in 20 tech-oriented office markets across the U.S., andfound a strong correlation between high-tech job growth andaccelerating office rents. From Q2 2012 to Q2 2014, Austinexperienced 34.2 percent growth in high-tech jobs, while officerents grew by 12.2 percent during the same period.

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“Within preferred submarkets, which, in many cases, are theneighborhoods of choice for millennials and high-tech companies,vacant space has become increasingly scarce,” said ColinYasukochi, director of research and analysis for CBREGlobal Research and Consulting. “As a result, nearby submarkets maysee increased leasing activity by tech companies.”

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“The same scenario holds true in Austin,” said ErinMorales, first vice president in CBRE's Austin office.“Downtown has seen the majority of initial interest from tech usersin the last 12 months, but as rates continue to rise and space isharder to come by, technology companies are looking to alternativeoptions in central, southwest, northwest and the fledgling eastsubmarkets for new office space.”

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The Bay Area accounted for the top three markets for rentgrowth–San Francisco, Silicon Valley and the San FranciscoPeninsula, respectively–followed by Manhattan, Denver, then Austin;followed by Boston and San Diego.

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