Area Development
A new report reveals the high-tech industry is enjoying a job growth rate nearly four times faster than the national average since the employment low point experienced in February 2010 (5.1 vs. 1.4 percent).

Released by Jones Lang LaSalle (JLL), the inaugural High-Technology Industry Report provides an overview of the impact high-tech growth is having on office space supply, demand and pricing conditions by looking at 18 U.S. markets.

The rapid growth in the high-tech sector can be attributed to "a combination of consumers' unquenched demand for new technology, and businesses' application of new technologies, such as cloud computing," explains the report.

Highlights of the document include:

"Consumer demand for gadgets, apps and new forms of media, coupled with businesses' technological needs, are what's driving high-tech employment," says Colin Yasukochi, JLL's director of research, NW Region. "Employment in the high-tech sector is a bright spot in an otherwise gray economic picture. "

The JLL report also found that "rising venture capital and initial public offering (IPO) activity is fueling key rapid evolution and growth segments of the high-tech industry." Moreover, the services sector (excludes manufacturing aspects of the high-tech industry) has the greatest direct impact on office space demand--and is growing even faster at 5.9 percent.

Looking forward, "tenants could face a period of significantly decreased leverage by the late 2013/early 2014 timeframe should the current economic recovery regain strength and broaden to include more industries important to office demand creation," predicts the report.