Don’t look now, but we might be in one of the most lucrative, opportunistic periods of all time for certain commercial real estate professionals. Giant tech corporations are on the move and there’s always the possibility another one might be interested in your target region.
The only question is, do you have the right technology to do something about, and benefit from, these changes? We’ll get to that later. Here are three ways tech giants are changing the CRE world:
1. Tech Property Demand Is Soaring
According to The Wall Street Journal, “five of the biggest property owners in the tech industry— Amazon.com Inc., Facebook Inc., Apple Inc., Google parent Alphabet Inc. and Microsoft Corp. —together occupy around 589 million square feet of U.S. real estate… That is more than all of the office space in New York City, or the equivalent to about 220 Empire State Buildings. It marks a fivefold increase from a decade ago.”
And those are just five companies. With more businesses supporting a work-from-home or hybrid option to employees, property needs are different. This is why we’re seeing an exodus from more expensive areas like San Francisco to more company-friendly areas like Texas.
2. Unexpected Cities Are Experiencing Economic Booms
What would you say if someone told you 20 years ago that Austin, Texas, would be a hub for tech giants? That’s quickly becoming the case, with Tesla, Airtable, Amazon and Google all making this iconic Texas city part of their property and expansion plans. With the tax breaks, thriving economy and plenty of workers in certain areas of the country that don’t have a big tech presence, it makes sense to consider calling an unexpected city home.
3. Rising Rents and Gentrification
As big tech companies move into cities and states that haven’t had a presence like this before, the immediate and surrounding areas will change to accommodate this growth. The economy will benefit which should be apparent in public infrastructure, but there will be rising rents and inflation in the area as a result. Keep this in mind as you make your commercial real estate investment decisions.
Addressing Big CRE Changes
CRE software like Quarem can help you prepare for and respond to these big changes. In fact, you’ll be ahead of the game by being able to evaluate market insights and set goals based on news you hear about any future big tech moves. Even if it’s not big tech, CRE software can help you with portfolios focused on any industry.
If you’d like to stay updated about CRE market changes and insights, consider taking Quarem’s CRE software for a spin. Request a demo today!