Tech-Services Market Shows Lofty Growth

Job growth in the tech-services sector has been more than 2 ½ times stronger than in the overall market for office jobs, according to a new report from real estate firm Jones Lang LaSalle.

It says tech-services jobs have grown by 14.2 percent since September 2009, compared with 5.5 percent in the overall office market. And it’s grown by 4.6 percent year-over-year, adding 108,500 positions.

The 49-page report looks in-depth at 20 tech markets. It considers these established markets: Austin, Boston, Denver, New York, Portland, San Diego, San Francisco, San Francisco Peninsula, Seattle and Silicon Valley. Rated as emerging markets are Atlanta, Baltimore, Chicago, Las Vegas, Los Angeles, Orange County, Philadelphia, Phoenix, Raleigh-Durham and Washington, D.C. In all, it’s a treasure trove of data.

It reports San Francisco had the hottest job growth at a 28.6 percent annual rate, followed by Las Vegas with soaring expansion in e-commerce. Los Angeles and Orange County were the only two markets showing job contraction and that was only minimal.

Yet, you can find the local articles on tech markets including Los Angeles, Atlanta and Austin. Though it’s not part of the report, Jones Lang LaSalle researchers in Dallas gave Big D bragging rights for Texas, finding it has the most tech jobs overall at 150,800, according to the Dallas Business Journal.  Austin still has a larger percentage of its work force in tech, at 7.7 percent, compared with 7.2 percent for Dallas, 3.7 percent in Houston and 3.4 percent in San Antonio.

• And addressing the features tech tenants look for in office spaces, the report lists trends toward:
• Renovated warehouses, rehabilitated brick and timber buildings, and historic buildings with retro architectural elements.
• Creative work spaces with open ceilings and workable windows.
• Access to electricity, air conditioning and heating at all hours and at higher capacities at times.
• Flexibility on allowing dogs in the building.
• Bike storage rooms and on-site showers to accommodate various styles of commuting.
• A need for shorter lease terms for startups, which may need to grow quickly, or to shut down at a similar pace.