Venture capital investment is fueling the turnaround in the top U.S. office markets, according to a new white paper released by the commercial real estate services provider Cassidy Turley.
According to the white paper, titled ‘Insights: Commercial Grows Where the Venture Capital Flows,’ every major market with significant venture capital flows saw an increase in office space user requirements. The white paper found that during the past 12 months, the nation's top performing office markets – including New York, Boston, San Francisco and San Jose, Calif. – were also among the most active in terms of venture capital investment. Even Washington, D.C., with its high level of government spending and a low 5.4% unemployment rate, benefited from venture capital activity – Cassidy Turner reports the market absorbed 4.2 million square feet of office space since 2010.
‘Venture capital flows are a clear bright spot in a still-tenuous economic recovery,’ says Kevin Thorpe, chief economist at Cassidy Turley. ‘In nearly every single major market where there are significant venture capital flows, current office-space requirements are up. For the most part, tech users are driving office market demand as they expand their real estate holdings in anticipation of expanding their payrolls.’
A copy of the new white paper is available online.
