What it Takes to Be a Top Office Market
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Muoio: “I would be shocked” if a market were to remain perpetually on top.
IRVINE, CA—Jobs and technology are key drivers foroffice space and are the two main elements that top office markets have in common, Auction.com’s chief economist Peter Muoio tells GlobeSt.com. (Auction.com is a GlobeSt.com Thought Leader.) A soon-to-be-released report from the firm reveals the top office markets in the country and how the sector is recovering since the recession. We spoke exclusively with Muoio about what it takes to make it to the top and the factors that can drag an office market down to the bottom.
GlobeSt.com: What do the top office markets in your report have in common?
Muoio: The first, and most important, answer is, “Follow the jobs.” All the areas that are generating office growth are also generating strong job growth. Second, four of the five markets at the top are clearly identifiable as markets where some form of technology is a key driver of the office economy. So, follow the jobs, and follow the technology. Third, several of the top markets—New York, San Francisco, San Jose, Seattle—are strongly supply-constrained markets. They’re not the kinds of markets that are easy to flood with space, even though development is taking place. These markets have had and continue to have demand because of job growth, particularly because of the tech sector…
