Despite the widespread adoption of remote and hybrid work policies, the technology sector is accumulating office space across the US, particularly in Seattle.
According to a new report from CBRE, technology firms leased over 2 million square feet in the Seattle area last year, which is triple the amount seen in other sectors.
In fact, tech companies accounted for 34% of total office space leased in Seattle, including new leases, renewals, and expansion. Of the 22 leases that were over 50,000 square feet, 12 came from technology companies.
Thanks to five Seattle leases totaling 1.5 million square feet, the city was ranked the sixth market with the largest 100 office leases last year.
For the US as a whole, technology firms accounted for 36 of the top 100 office leases last year at 11.4 million square feet, followed by government and public administration at 5.1 million square feet.
“I think there are a lot more companies that are saying, ‘You’re coming back to work’ — it’s not ‘if,’ it’s ‘when,’” said Victor Coleman, real estate executive at Hudson Pacific Properties. “The reality is that most companies are currently working from home but are wanting and planning to come back to the office.”
While the office sector was once in limbo, the communal shift to a post-pandemic world has emboldened companies to take the next step in bringing employees back into the workplace.
However, this doesn’t mean a full return to pre-pandemic normalcy. Technology companies in particular have been at the forefront of flexible and hybrid work arrangements, meaning office usage may never look the same.