PORTLAND, May 21, 2012 –
Strong growth in high-tech sector hiring, particularly in cloud computing and mobile applications and increasing competition between firms for talent, pushed Portland’s office market into upward motion in the first quarter of 2012, according to Jones Lang LaSalle’s High Tech Industry Report
"The tech sector has a relatively small footprint in traditional office markets but the city’s ability to attract and retain a highly educated workforce has made it one of the faster-growing tech employment markets in the country and this is now starting to be reflected in an upward shift in office market fundamentals, particularly within the Pearl District," said Patricia K. Raicht, research director, Jones Lang LaSalle.
Jones Lang LaSalle estimates that high tech accounts for nearly one-third of recent office market absorption nationwide. The top five markets of Boston, New York, Silicon Valley, San Francisco, and Seattle recorded annual rent growth across key tech-oriented submarkets between 16.8 and 57.9 percent in the first quarter.
Portland’s Pearl District saw annual rent growth of just under 5 percent during the same period, but according to Raicht the momentum is definitely upward.
"In addition to growth in the office sector, where tech and tech-related businesses are clustering in the Pearl and Downtown, we are also seeing an uptick in activity in the development of ancillary tech real estate, such as data centers, particularly in established tech markets such as the Sunset Corridor along I-26," Raicht said.
About Jones Lang LaSalle
Jones Lang LaSalle (NYSE: JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of $3.6 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with $47.2 billion of assets under management. For further information, please visit www.joneslanglasalle.com