Steffen Kammerer, JLL Technology Practice Group Lead

The tech industry has a greater impact on office demand than ever before. That is according to Steffen Kammerer, JLL technology practice group lead, who recently chatted with GlobeSt.com on all things tech and employment. When asked how the industry has changed over the past 10 years in terms of employment, he said that business has shifted and technology employment today is composed of different types of employees.

According to the firm's recent technology employment trends report, “there are now 13.1% more tech jobs today than there were at the height of the dot.com boom in 2001. With a shift toward an economy centered on consumer-based applications, enterprise cloud software, and social media platforms, the tech industry has evolved into a services-based industry on a large scale, having a greater impact on office demand than ever before. Since the previous peak in 2001, tech manufacturing has failed to recover 50.0 percent of peak-level jobs, while tech services jobs are 48.8% higher than the 2001 peak. This shift has allowed the industry to diversify geographically as well, since software development can be done from nearly anywhere with a good Internet connection.

GlobeSt.com: Which markets are best positioned for growth and why?

Steffen Kammerer: For tertiary markets, we are seeing increasing interest and favorable conditions in Columbus, Indianapolis, and Phoenix. For secondary markets, Baltimore, Houston, Philly and Minneapolis provide tenants with both a talent pool and opportunities for growth while in primary markets, Chicago offers favorable costs, options for expansion, access to capital and talent. However, there are several additional US markets with interesting and attractive dynamics depending on the size and strategy of the company.

GlobeSt.com: What do tech companies need to do in order to attract and retain top tech talent?

Kammerer: Synchronizing office space with recruiting means different things to different entrepreneurs – some might believe opening an office in an urban downtown market with access to public transportation, amenities, and a “cool” vibe is the way to attract talent, while others may focus on spaces and submarkets that would facilitate the recruitment of their existing network to follow them to a new company. The means to grab the right talent will vary from company to company, but creating an environment that fosters collaboration amongst employees and promotes a healthy work/life balance is critical. The hunt for talent is as strong as ever and having the right team to help with a demographic analysis early in any real estate decision is critical.

GlobeSt.com: What is your prediction for the remainder of 2016 and into 2017?

Kammerer: Even with venture funding slowing, the hunt for top talent is as strong as ever and companies continue to push innovation to new heights. With companies continuing to hire, expansion in major markets will continue (albeit at a slightly slower rate given the VC trend). Pricing will remain relatively flat through 2016 as those companies with strong balance sheets (both big and small) continue to expand their footprints to allow for operational growth. If we see the infusion of capital continue to slow in 2017 and executives begin to further scrutinize real estate decisions, we expect there to be a negative effect on pricing as a direct correlation to the reduced demand.

GlobeSt.com: Which markets are best positioned for growth and why?

GlobeSt.com: What do tech companies need to do in order to attract and retain top tech talent?

GlobeSt.com: What is your prediction for the remainder of 2016 and into 2017?

Instant Insights /

13.1% More Tech Jobs Today Than at Height of the Dot.com Boom

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